Cryptocurrency organizations have asked Congress to reconsider the $28 billion tax plan proposed in the Senate as they see this tax as an “imminent threat” to the crypto community. President Biden has proposed a $1.2 infrastructure package to upgrade America’s roads, railways, power grids, and broadband access. Within this package, $28 billion is allotted to come from a new proposed tax on cryptocurrency trade. This new tax would introduce new rules and regulations for crypto organizations and traders. This would require reporting on crypto transactions over $10,000.
On Friday, the Blockchain Association posted an open letter to Congress, saying;
“What Congress is considering with this measure is not a new tax on the cryptocurrency industry. Instead, it puts new reporting requirements on individual players in the industry who have no way to comply.”
While some in the crypto community are eager to begin the process to become a fully regulated institution with the IRS, Kristin Smith, Blockchain Association’s executive director, says that the language in this bill was “hastily drafted.”
1/ @blockchainassn and its 46 member companies—companies with tremendous expertise in the crypto ecosystem—appreciate the Senate’s ongoing engagement on the digital asset tax information reporting provisions in the bipartisan #infrastructurebill.— Blockchain Association (@BlockchainAssn) August 2, 2021