The US House of Representatives passed a bipartisan infrastructure bill worth 1.2 trillion dollars. If signed into law by President Joe Biden, the bill would enforce new regulations related to crypto tax reporting for all citizens.
The Infrastructure Act was originally proposed by the Biden administration to improve the national transportation network and Internet coverage.However The bill imposes strict reporting requirements on the crypto community, It is required to report digital asset transactions worth more than US$10,000 to the US Internal Revenue Service.
As Cointelegraph reported, the bill was approved by the Senate for the first time with 69-30 votes on August 10. A compromise amendment proposed by a group of six senators — Pat Toumi, Cynthia Loomis, Rob Portman, Mark Warner, Kirsten Sneima and Ron Wyden. According to Toomey:
“This legislation imposes serious flaws, in some cases infeasible cryptocurrency tax reporting authorization, threatening future technological innovation.”
Although the bill lacks verbatim clarity, the infrastructure bill intends to treat software developers, transaction verifiers, and node operators in the crypto community as brokers similar to traditional institutions.
After winning by 228 votes to 206, the House of Representatives passed the controversial infrastructure bill to President Biden. In addition, the crypto community has expressed concerns about the vague description of the term “broker”, which may impose unrealistic tax reporting requirements on sub-communities such as miners.
The bill is unconstitutional and anti-American in nature
Private citizens enjoy the right to financial privacy and financial freedom
It’s absolutely shameful to see this https://t.co/O9FkVC2CF4
-Meltem Demir ◎ rs (@Melt_Dem) November 4, 2021
As a consequence, failure to disclose revenue related to encryption will be considered a tax violation and a felony.
Legal experts recommend that the infrastructure bill be amended to make non-reporting of digital asset transactions a criminal offence.
Abraham Sutherland, a lecturer at the University of Virginia College, cited concerns about the U.S. government’s decision to refer to the crypto sub-community collectively as brokers:
“This is bad for all digital asset users, but it is especially bad for decentralized finance. The regulation does not completely prohibit DeFi. Instead, it imposes reporting requirements that will make it impossible to comply with the way DeFi works.”