Later in the day, the US House of Representatives is expected to vote on the bipartisan Infrastructure and Jobs Investment Act of 2021, a bill approving major investments in areas such as passenger trains, bridge repair, sewerage and sewer systems, green energy for power transmission and one . -Stop services. High speed internet. The large bill also contains several provisions that, if passed, could directly affect millions of cryptocurrency users, especially the expanded tax reporting requirements for organizations that process cryptocurrency transactions.

There is no justification for adopting the bill, not even a September 30 vote in the House of Representatives on the bill. The bill operates through Congress in tandem with the Budget Decision Act, where several factions in the Democratic Party control most seats in the House but need a clear party line of initiative, and conditional support for the infrastructure bill on certain relevant social and political items. in budget adjustment.

With political maneuvering near the boiling point, lawyers and players in the cryptocurrency industry are considering a bill that could become law in the next few hours.

spirit of law
At this point, one can only guess whether or not the Investment for Infrastructure and Jobs Act from 2021 in its current form will become law. Regardless of how provisions relating to cryptocurrency are incorporated into a uniform law like this one, one can suggest how Congress could legislate important guidelines that affect the cryptocurrency region in the future.

A controversial point is that provisions for users and companies using cryptocurrency have been added to the bill without taking into account industry views on the matter.

Ben Weiss, CEO of cryptocurrency provider CoinFlip, told Cointelegraph:

The industry has not had the opportunity to assess or discuss policy changes that would seriously disrupt the cryptocurrency ecosystem. We believe that more dialogue is needed between Congress and representatives of this fast-growing industry in order to come up with more effective and clear policies that benefit everyone.
Meanwhile, Jahon Jamali, co-founder of crypto investment firm Sarson Funds, does not believe the bill will negatively impact digital real estate in the long run, as the pace of development in the industry is far beyond the government’s capacity. . Hold it. Jamali added:

I am convinced that the huge account size and dollar amount that the government wants to spend will affect funding in general and possibly encourage more innovation in the fintech industry to lay the foundation for a blockchain-based system. …
Brock Pierce, Chairman of the Bitcoin Foundation, expects that “the market will react over time and adjust reality according to increased regulation.” Pierce expects crypto companies and entrepreneurs to work with regulators for smarter regulation as the industry gains political influence.

In fact, the requirements of the law will not come into force until after 2023 – a very long time by the standards of the cryptocurrency world.

Sean Hanley, a tax advisor for software company Thomson Reuters Tax and Accounting, believes that even if the law is not passed today, some form of legislation requiring the provision of cryptographic information would be passed “due to the government’s interest in fighting tax evasion.”

Many of these players do not interact with the parties trading on the blockchain, and therefore do not have access to their personal data, making compliance impossible.

Who are the brokers?
The crypto community’s biggest concern about the proposed legislation is part of the Internal Revenue Code, which extends the definition of a cryptocurrency “broker” — with associated reporting requirements — beyond cryptocurrency exchanges, including organizations such as software developers, stakeholders, node auditors, and miners .

Many of these players do not interact with the parties trading on the blockchain, and therefore do not have access to their personal data, making compliance impossible.

Stan Satter, a corporate and technology attorney at law firm Founders Legal, believes the confusing expansion of the basic definition is a result of lawmakers’ misunderstanding of how to handle crypto reporting. cover

Source: CoinTelegraph