US House of Representatives passes $1T Infrastructure Bill for Biden’s approval
The House of Representatives in the United States has passed the $1.2 trillion bipartisan Infrastructure Bill, which, following getting signed into law by President Joe Biden, would introduce new provisions in relation to cryptocurrencies-tax reporting for all US citizens.
The Infrastructure Bill had first been proposed by the Biden administration and was aimed at mainly improving USA’a national transport network and highway internet coverage.
However, the bill has made stringent reporting requirements compulsory for the crypto businesses operating in the States. One of the primary requirements is that all digital asset transactions that are worth more than $10,000 have to be reported to the IRS.
The Bill had first been approved on August 10, gaining a 69-30 vote, which saw a proposal for compromising the amendment by a group of six senators — Cynthia Lummis, Pat Toomey, Mark Warner, Rob Portman, Kyrsten Sinema and Ron Wyden.
According to Toomey, the upcoming legislation imposes a “badly flawed” and “unworkable cryptocurrency tax reporting mandate” that further threatens future technological innovation in the ecosystem.
Despite lacking clarity, the verbatim in Infrastructure Bill intends at treating the crypto community’s transaction validators, software developers and node operators quite similar to the brokers of the traditional financial institutions.
The US House of Representatives has passed the controversial Infrastructure Bill to President Joe Biden after it secured a win of 228-206 votes.
Additionally, the crypto community has shown concerns over the vague description in the Bill, for the word ‘broker’ that can consequently impose unrealistic tax reporting requirements for various sub-communities, including crypto miners.
As a repercussion, the inability of disclosing crypto-related earnings would henceforth be treated as a tax violation and felony.
US legal experts have also recommended amendments to the Infrastructure Bill wherein it considers improper digital asset transactions report as a criminal offense.
A distinguished lecturer from the University of Virginia School, Abraham Sutherland, has even cited concerns over the US government’s decision to blanket the term crypto sub-communities as brokers. He added that it is “bad” for all digital asset owners, but it is “especially bad for decentralized finance.”
Sutherland said the statute would not ban DeFi outright, but it does impose reporting requirements that, given the way DeFi works, would make compliance “impossible.”