U.S. Senators propose cryptocurrency taxes to fund infrastructure spending
By Bob Garcia
In an effort to raise money for infrastructure projects, American senators are proposing taxes on cryptocurrency transactions. These potential taxes are part of the U.S. Senate’s tentative $550-billion infrastructure deal. If implemented, expanded cryptocurrency taxes could produce $28 billion in revenue to fund electricity and transportation infrastructure.
The proposed legislation will also require all cryptocurrency transactions above $10,000 to be reported to the IRS, strengthen rules surrounding how corporations deal with digital assets, and introduce new compliance measures for brokers.
Despite the bipartisan push to tax cryptocurrencies, the industry isn’t enthusiastic.
Blockchain Association Executive Director Kristin Smith said, “Instead of rushing through an untested provision with vast unintended consequences, we encourage Congress to work with industry to find language that works for all stakeholders, keeping America at the forefront of crypto innovation.”
Jerry Brito who serves as the Executive Director of Coin Center, a cryptocurrency think tank based in Washington, tweeted, “The new bipartisan infrastructure bill in the Senate includes new tax reporting obligations for crypto. Unfortunately, in the drafts we’ve seen, the category of persons who would be obligated to report is so broad that it potentially covers persons who only provide software or hardware to customers and who have no visibility whatsoever into users’ transactions.”
The call to regulate and tax digital assets is by no means new. Earlier this month, U.S. Treasury Secretary Janet Yellen called for increased regulations for stable coins and stable tokens. The President’s Working Group on Financial Markets is expected is issue a draft proposal for regulating stable coins later this year.