‘No changes to crypto tax provisions’ – Infrastructure bill set for a vote in September
One of the most controversial bills in the US, the $1 trillion infrastructure bill, is slated for a vote on September 27 in the US House of Representatives.
The vote was agreed without any amendments to the crypto tax provisions, following a narrow approval of the Democrats’ $3.5 trillion budget blueprint, against a vote of 220 to 212. Although there was initial pushback from moderate Democrats, voters were swayed when House Speaker Nancy Pelosi strongly ascertained that she had committed to passing the bill by September 27.
At the end of July, last-minute changes were added to the cryptocurrency provisions in the infrastructure bill for further raising $28 billion through tax obligations in the crypto sector.
The presence of loose language within the bill has shocked the crypto community, compelling analysts to believe that it will implement stringent requirements on network validators and software developers for third-party reporting.
The US Senate looked prepared to pass compromise amendments to the bill which would exempt the network validators and software developers, particularly by early August, but owing to a dissenting Senator, the legislation was eventually passed without any alterations.
An official from the Treasury Department expressed a glimmer of hope for the crypto industry when they told CNBC that reporting requirements wouldn’t be imposed on those who are unable to comply. The official also implied that the Treasury is planning to conduct detailed research for understanding which stakeholders within the crypto markets would potentially adhere to the updated reporting requirements.
Coin Center executive director Jerry Brito, however, emphasized that the infrastructure bill’s language presently requires reporting both on trading and transfers. Brito also highlighted that all crypto transactions above $10,000 would now be required to be reported to the Internal Revenue Service in addition to personal information on the counterparty.
The Blockchain Association’s Executive Director, Kristin Smith, commented that the infrastructure bill’s passing without any amendments is “unfortunate but unsurprising.”
