Last-minute additions to the bipartisan infrastructure deal in the United States Senate saw lawmakers propose expanded cryptocurrency taxation to raise an additional $28 billion in revenue. The latest proposal will implement more strict rules on businesses dealing with crypto, expand reporting requirements for brokers, and mandate that crypto-asset transactions worth more than $10,000 are reported to the Internal Revenue Service.
Ohio Senator has expressed concerns regarding crypto taxation.
Senator Rob Portman of Ohio, the lead Republican for the infrastructure discussions, noted Congress had expressed concerns regarding crypto reporting and taxation requirements for some time. “Everybody’s been talking about the appropriate way to provide more reporting in particular, and that leads to better compliance,” the senator said. The crypto measures were added at the last minute to the deal on July 28, following weeks of back and forth between the Republicans and Democrats. Crypto tax revenues will be used to partially fund a $550 billion investment into transportation and electricity infrastructure.
The crypto industry is already pushing back against the proposal.
The crypto industry is already pushing back against the proposal, with Blockchain Association executive director Kristin Smith, argued that many of the crypto firms that would be subjected to the new rules lack the capacity to collect the required information. “We’re pushing every lever right now to change it,” she said, describing the proposed measures as “hugely problematic.” The latest tax proposal comes as crypto assets are coming under increasing regulatory scrutiny in the United States. Cryptocurrency regulations across countries are under scrutiny. Several financial regulators have criticized the industry. Earlier, Senator Elizabeth Warren urged Treasury Secretary Janet Allen to act with urgency regarding cryptocurrencies.