In a Monday afternoon session (09), the Senate rejected a last-minute amendment that would improve the new regulation that forces companies to report cryptocurrency transactions in excess of $10,000 to the Internal Revenue Service (IRS). American Federal.
The amendment was intended to affect only traditional brokers, or “companies that carry out transactions on exchanges where consumers buy, sell and trade assets in digital.” was overturned and the original project is now going to the Chamber of Deputies.
Today the US Senate continued to discuss the $1.2 trillion proposal for US infrastructure. The vote defined that a “broker” – including all agents of the crypto market such as software developers and miners – according to the text of the current provision, will be required to report cryptocurrency gains in a 1099 form type.
In the project voted by 69-30, the definition of “broker” includes validators, such as miners and stakers, in the collection of US$ 28 billion for the American BC’s coffers.
The original definition of the text will help pay the $550 billion in new infrastructure spending, but could hurt the country’s cryptocurrency market.
The Blockchain Association expressed concern to CNBC about this rejection: “As written, the infrastructure bill contains harmful IRS reporting requirements that many in the crypto ecosystem are unable to comply with. As a result, many players in this market will be forced to move abroad, leaving future jobs and economic growth on the table.”
Taxing cryptocurrencies now would be like taxing the internet in the 1990s, as the crypto market would still have a lot to grow without regulatory burdens. The prevailing language has also fueled concerns that authorities may use the regulation to crack down on non-brokering parties in measures that could deter intermediaries, such as cryptocurrency miners, from doing business in the United States.
After the bill was voted on, the cryptocurrency dropped 1.6% in 24 hours, according to CoinGoLive.
Bitcoin exists since 2009, even so, among senators there is little knowledge about the technology. While industries such as banking, real estate and pharmaceuticals have long-standing ties to lawmakers and lobbying operations, sometimes backed by big banks, the cryptoactive industry is just making itself known in the halls of Congress.
The infrastructure project now goes to the Chamber of Deputies, which is expected to deal with the matter in the fall.