President Joe Biden signed the bipartisan infrastructure bill into law, including more than one trillion dollars in government spending. In addition to measures funding infrastructure projects, the new law has far-reaching implications for the cryptocurrency industry.
Senior fellow John Berlau said:
“In rushing the infrastructure bill through, Congress unfortunately ignored the bipartisan outcry about the vague and broad tax reporting provisions for cryptocurrency in the legislation. During the debate this summer on the Senate version of the bill, Democrats and Republicans expressed the widespread sentiment that cryptocurrency developers and creators such as miners, who for security purposes do not have access to identifying information of individual crypto holders, should not be treated as ‘brokers’ with tax reporting obligations for those whose cryptocurrency accounts they service. Grass-roots efforts from state and local groups to push for modifying the problematic provisions showed that cryptocurrency and blockchain entrepreneurs are a vital part of every region’s economy. Congress should modify these provisions in other legislation, and if that is not done, the Treasury Department should stick to promises made during the legislative debate to not apply these provisions to non-brokers. Policymakers need to ensure that these infrastructure ‘pay for’ provisions do not destroy, rather than help build, a vital part of America’s digital infrastructure.”