President to receive Infrastructure Bill with crypto tax provision

The U.S. House of Representatives put the controversial Infrastructure Bill to the vote. The Bill consists of a provision for cryptocurrency taxes according to which crypto holders will be required to report their taxes. On Friday night, the motion was put to the vote, and the results were crystal clear. 

The House gave the nod to the Infrastructure Bill, with over 218 votes in favor while fulfilling a key goal for the Biden administration amid controversy over whether an accompanying Democrat-led bill would also move forward.

Back in the month of August, the Senate passed the law after shooting down a number of attempts made by prominent individuals for amending the Infrastructure Bill. The journey of this Bill has now brought it to the Oval Office for the President’s approval.

Infrastructure Bill struck fear in the hearts of investors

The Infrastructure Bill has struck fear in the hearts of cryptocurrency investors, who are worried about a provision involving tax reporting that sought to expand the definition of a broker for IRS purposes. This means that all the brokers will have to report taxes under the current tax code. 

Another provision of the Infrastructure Bill that worried crypto investors in the United States includes the amendment of Tax code section 6050I. Written nearly 40 years ago, the law applies to in-person transactions that exceed $10,000 and requires the sender to verify the receiver’s information, record the Social Security number, and finally report everything to the government. 

Unlike other tax codes, not complying with the 6050I is a felony, and when applied to cryptocurrencies or non-fungible tokens, the law becomes impossible to deal with. The voices against the Infrastructure Bill have been strong but to no avail. It passed the Senator with no amendments and has now reached the President’s desk.

The U.S. Treasury or the House hasn’t issued any statement regarding the procedure it will follow to implement these changes and how businesses will follow them.