U.S. senators to launch legislation limiting crypto tax

U.S. lawmakers will propose a bill whose aim is to reduce a provision that critics argue is overly broad and would stifle the rise of cryptocurrencies. 

Some cryptocurrency organizations, for example, would be required to publish information about their users if they provided a service “effectuating” the transfer of crypto assets

Some groups, such as miners and software developers, may be obligated to transmit tax data to the IRS that they do not have access to.

Words of the senator

Senators Ron Wyden (D-Oregon) and Cynthia Lummis (R-Wyoming) collaborated on the bill, which was sponsored by both Democrats and Republicans

“The new reporting requirements do not apply to individuals developing blockchain technology and wallets,” Wyden said in a statement. 

“This will safeguard American innovation while also ensuring that people who buy and trade cryptocurrency pay their due taxes.”

It’s unknown when this law would be considered for a vote, as it could be included in other year-end legislative packages. This would also include a provision that would make it retroactive to the day the infrastructure bill was signed.

Summertime assistance

The measure itself is the result of the bitcoin industry’s overflow of concerns during the infrastructure bill’s talks. 

Following the inclusion of the tax requirements in the public-works package, bitcoin proponents and businesses banded together over the summer to try to alter it.

Square Inc. Chief Executive Officer Jack Dorsey and Coinbase CEO Brian Armstrong are among those who have indicated support for changing the present language in the infrastructure plan.

As stated by The Joint Committee on Taxation, Congress’s official tax scorekeeper, the crypto tax regulations, which were introduced to offset part of the cost of the $550 billion in new expenditure, might bring in roughly $28 billion over a decade.

 

Image courtesy of Cointelegraph News/YouTube

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