The new infrastructure bill is upsetting to investors as it seeks to regulate cryptocurrency. Cryptocurrency has never been regulated up until this point.
The infrastructure bill was finally signed by President Joe Biden. It’s been the focus of Congress for months.
Most focus with the bill is on things like roads or bridges. There are also things for broadband internet as the world becomes heavily reliant on technology.
Keeping up with the 21st century and new technology, the bill also went after the currently unregulated cryptocurrency.
The plan is to bring in tens of billions of dollars in tax revenue off cryptocurrency. Crypto investors are displeased.
Details of the bill regulating cryptocurrency and reactions of investors
Beginning in spring of 2024 it will be required that brokers of cryptocurrency record transactions. They will track them for the IRS. They’ll need to provide personal information about their customers like name, address, and phone number. They need to provide any gains or losses from trading as well.
Businesses that get over $10,000 in cryptocurrency must report the identity of the person who paid to the government as a way to deter crypto laundering the way they avoid money laundering.
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The expectation from the IRS is an extra $28 billion extra dollars.
One concern is the use of the word “broker” and that it’s too broad. It may include crypto miners and software developers under the umbrella definition, and they don’t have access to the details the IRS wants.
Some senators are working to change the definitions of broker in the industry.
Senator Ted Cruz is is trying to appeal it entirely.