Lawmakers on both sides of the aisle are opposed to changes to tax reporting rules for cryptocurrency and transactions worth more than $10,000 in the recently passed infrastructure bill.
Ten Democratic lawmakers led by Darren Soto have called for a review of the definition of “broker” in the Infrastructure Act, which was passed on Monday.
The team issued an open letter signed by Soto with actors Roh Hana, Stacey E. Blascott, Eric Swalwell, Tim Ryan, Susan Wild, Mark Vesey, Jake Okinklaus, Aluson and Charlie Krist, requesting an update of Section 6045(c). )) (1) The bipartisan Infrastructure Tax Act (BIF).
Experts have warned that a controversial new rule could make miners, auditors and wallet developers brokers for tax purposes. The letter demanded that House Speaker Nancy Pelosi fire the group on the grounds that it is not a brokerage firm.
The letter also addresses concerns about negative market impacts and how the United States will maintain its technological innovation if the rules remain unchanged.
“As written today, the BIF will increase uncertainty in the crypto industry, pick winners and losers, and thwart the IRS’s efforts to rigorously tax cryptocurrencies while depriving our country of a competitive advantage over other countries in the digital asset market.”
The senators are also insisting that the tax reporting requirements of the BIF be changed. Senators Ron Wyden and Cynthia Lamis introduced a bill that they say protect American innovation, ensure Americans pay the taxes they owe, and “does not apply to people who develop blockchain technology and wallets,” Bloomberg reports.
On this topic: US Senator Sends Permission for Crypto Payments in the Capitol Complex.
Senator Ted Cruz also introduced a tax-change bill on Tuesday. The new reporting rules are being called a “devastating attack” on the cryptocurrency industry. His concerns reflect some House statements that the current situation will stifle American innovation and “threaten the privacy of many Americans.”
Senators in general are just beginning to understand more deeply how the cryptocurrency industry works. On Wednesday, the US Congress’ Joint Economic Committee held a hearing on “Demystifying Cryptocurrency: Digital Assets and the Role of Government.” At this hearing, they discussed the complex tax authorities that would power centralized exchanges and agreed that privacy and security were two of the most important concerns.