The United States Congress seeks to impose a series of regulations on the cryptocurrency market. The vote on the new cryptocurrency tax bill will likely be today. The sector is attentive to the decision of the House of Representatives.
In this regard, Joe Biden, president of the United States, seeks to finance an infrastructure plan with taxes on cryptocurrencies. If approved, it will force cryptocurrency brokers to report information on transactions involving digital assets.
Very importantly, the proposal describes a broker as «anyone who (out of consideration) is responsible for regularly providing any services that carry out cryptocurrency transfers. On behalf of someone else».
Law to collect taxes on cryptocurrencies
To this end, the growth of the cryptocurrency sector pushed global watchdogs to strengthen their control over the industry. And America has strived to be a leader. Especially since Joe Biden took office.
In fact, the regulation is intended to offset the $ 1.2 billion expense demanded by the infrastructure plan that the Joe Biden administration carries out. For now, his vote remains in the Senate, and if it is approved, it will then go to the House of Representatives.
By the way, the cryptocurrency tax law will require any broker to submit a tax form for each transaction with a digital currency. Also, it instructs the Internal Revenue Service (IRS) to be informed of all operations that exceed $ 10,000.
The disputed tax revenues would be part of the funding for a budget of $ 550 billion. To improve the transportation and electricity infrastructure of the country.
The opposite proposal
In contrast, Senator Cynthia Lummis, working with Senators Ron Wyden and Patrick Toomey, made another proposal. Which seemed less harsh for particular industrial sectors.
Specifically, these legislators refer exactly to the definition that there is of “broker”. And they request not to include “developers of digital assets. Or the corresponding protocols and the management of mining software or hardware ».
However, the White House Administration supported Senator Rob Portman. Stating that: «she is pleased with the progress that a compromise sponsored by Senators Warner, Portman and Sinema has produced. To advance the bipartisan infrastructure package. And clarify the measure to reduce tax evasion in the cryptocurrency market».
In addition: “Management believes that this provision will strengthen tax compliance in this emerging area of finance. And it will ensure that high-income taxpayers contribute what they owe under the law».
The reactions were immediate, Kristin Smith, executive director of the Blockchain Association, said that this measure could push those who work in the field out of the country. «This would be disastrous for the United States’ crypto ecosystem.».
In a post in TwitterThe Blockchain Association commented on its interpretations of the project, the requirements of which it considers “unenforceable.” Mainly for smaller developers.
Similarly, Jerry Brito said that if the United States Congress passes the bill, it will be like choosing winners and losers.
In particular, Lark Davis, commentator and YouTuber indicated that if the bill passes, it will essentially take the United States out of the crypto game. Millions of Americans will be left even further behind the crypto revolution than they already are.
Also, there is the CEO of Coinbase, Brian Armstrong, who criticized the proposal presented by Senators Rob Portman and Mark Warner. For him, the legislation would eventually lead innovative companies to seek other countries to establish themselves.
Finally, do you think that the price of Bitcoin can react to the result of this vote, on the tax law on cryptocurrencies? Leave your opinion in the comment box.
I say goodbye with this phrase by Konrad Adenauer: «In politics the important thing is not to be right, but to give it to you».