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- The house of representatives recently passed the $1.2 trillion dollars bipartisan infrastructure bill which is expected to be signed into law by the president
- The bill consists of the astringent part where it requires crypto users to report their earnings to the IRS beyond a certain amount
- The arbitrary definitions of the bill concern many citizens
The Biden Administration as soon as it got elected started working on various fields themed around building back better. As a part of it, the infrastructure bill was introduced and was allegedly centered around the transport network & internet coverage.
After months of negotiations, the controversial $1.2 Trillion bipartisan bill was passed on the Senate floor, the bill now will reach the president’s desk & is also expected to be signed into law. The bill was first approved by the Senate on August 10 with 69:30:1 votes which were later bagged into further amendments by 6 senators namely: Kyrsten Sinema, Rob Portman, Ron Wyden, Pat Toomey & Cynthia Lummis.
However, the bill apart from being themed to infrastructure also has a provision related to cryptocurrencies & digital assets. It is mandated by the bill that any citizen transacting more than $10,000 in digital assets is required to report their earnings to the IRS. The failure to report any earnings related to digital assets will be treated as a felony and happens to be punishable under the law.
While the House passed the bill with a success ratio of 228;206 votes. Senator Pat Toomey mentions that the legislation was flawed and in some cases, even unworkable & the tax mandate on cryptocurrency threatened the future innovation of the industry.
While some other experts also criticized the whole floor by questioning if any of the senators understood the bill or whether they had read the whole 2000 pages infrastructure spending bill.
The bill is perceived as extremely arbitrary in nature where it could treat software developers, node operators & transaction validators in the shadows of a loosely placed term as brokers.
The crypto community became extremely concerned with the absolutely arbitrary & vague definition of the term “Broker”.
Furthermore, legal experts have suggested various amends to that part of the bill where it considers the inability to report crypto transactions as a punishable offense, but as things seem right now, the crypto community found the bill irksome & a sense of oblivion as to how defi works but the controversial bill is set to be brought into law, once the president signs it.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
