The draft language could mean a number of individuals interacting with crypto may have to start reporting their transactions.
A bipartisan infrastructure bill in Congress proposes to raise $28 billion from crypto investors by applying new information reporting requirements to exchanges and other parties.
According to a draft copy of the bill shared with CoinDesk, any broker that transfers any digital assets would need to file a return under a modified information reporting regime. The draft defined digital assets as “any digital representation of value … recorded on a cryptographically secured distributed ledger” or related technology. It also includes decentralized exchanges and peer-to-peer marketplaces in its definition of brokers.
“I just think, what are they thinking? Because, actually, higher taxes tend to lower revenue. So, right now, they need a lot of revenue. They’re printing money. And if you bring in higher taxes, it lowers the motivation of the people. If you are working towards some goal, you’re a start-up and you’re saying, ‘I’m going to build something of great value’ and then you realize the government takes more than half of it, you’re orkinwg through July before you even have started to work for yourself and that motivation starts to dwindle.”
Blair Effron, partner and co-founder of Centerview Partners, advised waiting to see Biden’s tax package in its final form:
“I think we ought to step back and see how the overall tax package comes together. You obviously have a 50-50 Senate. I think there’s going to be a lot of negotiation back and forth. The administration’s already indicated that. The Republicans came out [Thursday] with a $600 billion infrastructure package. … We ought to assume that the overall number when we’re done both in terms of the infrastructure will be lower and in terms of how to pay for it with taxes will also be lower.”
The $1 trillion infrastructure bill also includes provisions for funding public transit, particularly passenger rail; investments in bridges, clean drinking water and wastewater infrastructure; and high-speed internet access for all Americans, among other provisions, according to a White House fact sheet.
The U.S. Senate may conduct a test vote as early as Wednesday, Senate Majority Leader Chuck Schumer (D-N.Y.) said.
In a statement, U.S. President Joe Biden praised the team that negotiated the bill, saying neither side got 100% of what it wanted.
“Everyone from unions to business leaders and economists left, right and center believe the public investments in this deal will mean more jobs, higher productivity, and higher growth for our economy over the long term. Experts believe that the majority of the deal’s benefits will flow to working families,” he said in a statement.
A previous Biden budget proposal also includes new crypto reporting requirements.
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