US Senators Look to Raise Extra $28 Billion via Crypto Taxes

The latest iteration of the bipartisan infrastructure plan in the United States Senate has been supplemented with several new provisions aimed at expanding crypto-related taxation and reporting requirements.

Per the document published today, policymakers are looking to raise an additional $28 billion through these taxes. These funds would make up a portion of the $550 billion investment into the country’s transportation and electricity infrastructure.

Among other things, the updated plan proposes to tighten transaction reporting rules for crypto brokers as well as oblige businesses to report all transfers of digital assets worth $10,000 or more to the Internal Revenue Service.

“The provision includes updating the definition of broker to reflect the realities of how digital assets are acquired and traded. The provision further makes clear that broker-to-broker reporting applies to all transfers of covered securities within the meaning of section 6045(g)(3), including digital assets,” said the document.

The new proposal comes as policymakers and regulators are paying increasingly more attention to the crypto industry. Just last week, U.S. Treasury Secretary Janet Yellen urged to “act quickly” on stablecoin regulation.

Earlier this week, certain reports also suggested that executives at Tether, the company behind the most-used stablecoin in the industry, USDT, are facing a probe from the Department of Justice for alleged bank fraud.

Not to mention Senator Elizabeth Warren, who recently argued that cryptocurrencies are putting the financial system in the hands of “shadowy super-coders.”

29 July 2021 09:01