The House of Representatives passed a $1T infrastructure bill and crypto tax for Biden’s approval

The US House of Representatives passed a bipartisan infrastructure bill worth 1.2 trillion dollars. If President Joe Biden signs into law, the bill will 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 Mandatory strict reporting requirements For the crypto community, all digital asset transactions worth more than $10,000 are required to report to the IRS.

As Cointelegraph reported, the bill was approved by the Senate for the first time by a vote of 69 to 30 on August 10. Compromise amendment proposal Composed of six senators-Pat Toomey, Cynthia Lummis, Rob Portman, Mark Warner, Kyrsten Sinema 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 submitted 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.

As a consequence, failure to disclose revenue related to encryption will be considered a tax violation and a felony.

related: The figure 8 encryption amendment in the Infrastructure Act is “an insult to the rule of law”

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.”