According to Bloomberg, the U.S. government plans to introduce new cryptocurrency tax law for digital asset holders and companies. The new tax law proposes that investors report all cryptocurrency transactions exceeding $10,000 to International Revenue Service. The new project will allow lawmakers to raise $28 Billion in revenue.
Senator Rob Portman said that Congress has expressed concerns over crypto reporting and taxation.
Everybody’s been talking about the appropriate way to provide more reporting in particular and that leads to better compliance.
With new cryptocurrency tax law, U.S. lawmakers want to tax crypto holdings held by American citizens to finance infrastructure projects. Yet, the House-approved text of the new bill would make it almost impossible to get KYC certificates in the crypto space.
On Wednesday, Senators voted 67 to 32 to move the bipartisan infrastructure bill forward to the House. The bill will now go through a process of amending and debating the proposal before going to the House floor for a final voting. If it fails to pass, it will be signed into law by Joe Biden. Biden could also veto it, but that is unlikely considering the overwhelming majority of 50 Democrats voted for the bill.
The new proposal comes at an era when regulators as well as policymakers are paying greater attention to crypto. Janet Yellen from the U.S. Treasury urged us to act on stablecoin regulation last week.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.