The US treasury seeks more crypto reporting rules in the $3.5 trillion reconciliation bill according to an anonymous administration official as we are reading more in our latest cryptocurrency news today.
The Biden administration wants to incorporate a new reporting mechanism in the upcoming $3.5 trillion budget bill according to reports in Roll Call citing an anonymous administration official. The language will require the American crypto companies like exchanges to report data about non-US users which could be exchanged with other countries to make sure that the traders are paying taxes.
— Jerry Brito (@jerrybrito) August 30, 2021
None of this was in the spending package as initially constituted which has been designed to be a filibuster-proof but will need the 50 votes in Senate to pass. The budger framework includes money for climate change, Pre-K, housing, clean energy, and more and it is being pushed by Senate and House Democrats in the face of the Republican opposition. The Treasury Department under President Biden already hinted at exchanging information with other countries as a way of getting crypto asset holders to pay the taxes when the time comes. The US treasury seeks crypto reporting rules in the bill because it thinks that actors which are setting up corporate entities to play multi-billion shell games with the offshore exchanges and wallets could pose risks. To crackdown, the US needs more information from other countries and to get that information it will need to come with information of its own to start trading which is where the revised reporting requirements come into play.
Just this month, crypto think tank Coin Center and advocacy group Blockchain Association came out against the package bill which is due to be voted on the house in September as it included a last-minute provision that redefined those dealing in digital assets as brokers, making them responsible for sharing tax information with the IRS. While the purpose of the provision is to pay $28 billion of the bill by imposing tax reporting requirements, detractors argued that the language was overly broad and requires miners as well as validators to gather information about people that make transactions which is an impossible task that sent the industry into crisis.
The industry-led effort to amend the bill failed in the Senate and the House confirmed a new procedure that ensures it cannot be amended either though the administration hinted that it is not interested in applying these new rules to non-custodial actors. If Roll Call’s reporting is accurate and the administration convinces Congressional Democrats to include more crypto language in a new bill, the crypto supporters will feel picked on no matter of the merits.
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