US Senators have voted to approve a surprise tax amendment on cryptocurrencies. The proposed new amendment seeks transactions of $10,000 or more to be reported to the IRS. This proposed amendment will now move through to the House of Representatives to be voted on. If passed, businesses will have a legal obligation to report cryptocurrency transactions of $10, 000 or more to the IRS.
This threshold is already the minimum for IRS reporting, meaning that this tax amendment is moving to encompass crypto with other monetary transactions.
This new tax amendment is a bit controversial. Some say that this new tax threshold is just trying to tap into a lucrative market to make monetary gains, while others see this tax amendment as good news: the government might now offer some protection for cryptocurrency. There is a $550 billion dollar funding gap in the US which could begin to be closed with this tax revenue.
The government has plans to update America’s transportation and power systems. Experts say that if the government can tax crypto and begin making money to help other areas of infrastructure, there is a better chance that the government won’t move to get rid of cryptocurrency exchanges.