U.S. senators rush to retroactively tweak crypto infrastructure bill

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U.S. Senators Ron Wyden and Cynthia Lummis rush to tweak controversial crypto provision, in a bid to restrict some of the new tax reporting rules outlined in the president’s $ 1.2 trillion infrastructure bill Joe Biden enacted Monday, Bloomberg reported.

Hoping to override the provision, which crypto lobbyists say is too broad and would hamper the growth of the industry in the country, the Democrat of Oregon and the Republican of Wyoming drafted a separate bill on the declaration. cryptography.

Retroactive solution

According to the report, it is not clear when the Crypto Reporting Bill, which includes a provision that would make it retroactive to the signing of the Infrastructure Bill, could be put to a vote.

The stand-alone bill was prepared after unsuccessful attempts to address the controversial crypto brokerage clause.

Crypto advocates have warned that the wording of the infrastructure bill would require industry participants, including miners and software developers, to report tax data to the IRS, which they do not have. no access.

“Our bill makes it clear that the new reporting requirements do not apply to people developing blockchain technology and wallets,” Wyden said.

“This will protect American innovation while ensuring that those who buy and sell cryptocurrencies pay the taxes they already owe,” added the chairman of the Senate finance committee.

Enforce tax compliance

In an effort to enforce tax compliance, signed legislation set out more stringent reporting requirements for crypto service providers.

This doesn’t just affect brokers, legal experts have warned, and the set threshold that requires crypto transactions over $ 10,000 to be reported to the IRS “is more complicated than it sounds.”

Determined to keep a major campaign promise to revamp the country’s infrastructure, the bill included cryptocurrency rules in an effort to offset some of the historic costs.

According to the report, the Joint Committee on Taxation estimates they would raise around $ 28 billion over a decade.

“Digital assets are here to stay in our financial system and the decisions we make now will have impacts in the future,” said Lummis, aware that the new legislation could have a negative effect on the development of the industry. cryptography in the country.

“We need to foster innovation, not stifle it,” she added.

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