Lawmakers on both sides of the aisle are fighting against changes to the tax reporting rules for cryptocurrency brokers and transactions of more than $ 10,000. in the recently approved infrastructure bill.
Ten US Democratic Congressmen, led by Representative Darren Soto of Florida, They called for the definition of corridor to be revised in the infrastructure bill that was approved on November 15.
The group issued an open letter, signed by Soto along with representatives Ro Khanna, Stacey E. Plaskatt, Eric Swalwell, Tim Ryan, Susan Wild, Marc Veasy, Jake Auchincloss, Al Lawson and Charlie Crist, in which They request that section 6045 (c) (1) of the tax code be updated within the framework of the Bipartisan Infrastructure Act (BIF).
Experts warned that the controversial new rule could lead to miners, validators and wallet developers being viewed as intermediaries for tax purposes. The letter asks House Speaker Nancy Pelosi to exclude this group on the grounds that they are not engaged in brokerage services.
We stand united to ensure more tax certainty for #cryptocurrency and work with the IRS on key reforms. Together, we will continue to support innovation and protect consumers. pic.twitter.com/xu1Dj2GAqD
– Rep. Darren Soto (@RepDarrenSoto) November 16, 2021
We stand together to ensure greater tax security for cryptocurrencies and work with the IRS on key reforms. Together, we will continue to support innovation and protect consumers.
The letter also addresses concerns about negative effects on the market. and how the United States will maintain its pace of technological innovation if regulations remain unchanged.
“As drafted today, the BIF would increase uncertainty in the crypto industry, pick winners and losers, and thwart the IRS’s efforts to accurately tax crypto, all while destroying our country’s competitive advantage over to other countries in the digital asset market. “
Senators are also pushing to modify the tax reporting requirements in the BIF. As Bloomberg reports, Democratic Senator Ron Wyden and Republican Senator Cynthia Lumis introduced a bill that they say protects American innovation, ensures that Americans pay the taxes they owe, and “does not apply to individuals who develop the blockchain technology and wallets. “
Republican Senator Ted Cruz also introduced legislation on Nov. 16 to modify the tax code. He calls the new reporting standards a “devastating attack” on the cryptocurrency industry.. His concerns echo some of those of House Democrats that the current provision will stifle American innovation, and “jeopardize the privacy of many Americans.”
Senators as a whole are only beginning to understand in greater depth how the cryptocurrency industry works. The Joint Economic Committee of the United States Congress held a hearing on November 17 titled “Demystifying Cryptocurrencies: Digital Assets and the Role of Government.“At this hearing, the complicated tax entities that centralized exchanges should govern were discussed, and it was agreed that privacy and security are issues of the first order.
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