Posted 9 months ago | by Catoshi Nakamoto

The U.S. Treasury (led by Janet “how much you paying, I’m selling” Yellen), now wants to use its influence to add in crypto regulations at the last minute to the $3.5 trillion dollar reconciliation bill that is holding up the original Infrastructure Bill for a vote within the House chamber.

AdobeStock 298103138 U.S. Treasury Wants Crypto Tax Rules Within $3.5 Trillion Dollar Reconciliation Add On Bill To Infrastructure Legislation

U.S. Treasury Wants More Crypto Tax Provisions On Add On Reconciliation Bill To Infrastructure Legislation

The Biden administration wants to implement new crypto tax reporting obligations at the last moment in an upcoming $3.5 trillion budget reconciliation bill, according to a report published on Roll Call citing an anonymous administration official. The rumor states that the language would require American cryptocurrency firms, with a focus on exchanges, to report data about non-U.S. users; so information could be exchanged with other countries to ensure that crypto traders pay their fair share of taxes worldwide.

Jerry Brito from Coin Center a DC think-tank crypto lobbyist group tweeted out the news, complete with a facepalm emoji.

This is something that Bitboy Crypto highlighted was in the Fiscal Year (FY2022) budget plan as well and a rule that FinCen a department under the umbrella of the U.S. Treasury wanted as a law to combat Anti-Money Laundering (AML) and Counter Financial Terrorism (CFT) which are overseen by the Financial Action Task Force (FATF.)

As Bitboy Crypto previously reported, while, the Infrastructure Bill, has been widely controversial. Many in the crypto community have missed the provisions in Joe Biden’s Fiscal Year 2022 bill which proposes requiring crypto exchanges and custodians (wallet providers) to file reports with the Internal Revenue Service (IRS) for gross flows above $600 according to Congressional Research Service (CRS). Much like the Infrastructure Bill, the administration’s proposal also includes a reporting requirement for inter-broker crypto transfers and businesses that accept cryptocurrencies demanding they report transactions that exceed $10,000 in value to the IRS.

“The Administration also proposes expanding the information reporting requirements for brokers, including crypto exchanges and wallet providers, to include information on US and certain foreign account owners,” CRS wrote.

From the researchers’ perspectives, the Biden Administration has proposed expanding reporting requirements for brokers, including crypto exchanges and wallet providers, to include information on U.S. citizens and certain foreign account owners. The Administration states this would allow for automatic information sharing with foreign tax jurisdictions in exchange for information on U.S. taxpayers transacting in crypto outside the United States.

It’s important to note that the additional added provision to the reconciliation bill will need all 50 Democratic votes in the Senate to pass. While all Republicans have already vowed to vote against the budget plan as Reuters reported.

Republican Senator Wants Blockchain And Crypto Industry Thriving With Investor Protections

Republican Senator and a member of the Senate Banking Committee Pat Toomey has issued a public call requesting proposals to make sure that federal law cultivates the development of the crypto and blockchain industry while still protecting investors. The committee will collect proposals until September 27th. Interested persons should submit electronic copies of their proposals to Committee staff at submissions@banking.senate.gov. All proposals will be published at a future date. 

“Rather than trying to ignore or suppress cryptocurrency and related technologies, regulators and legislators alike need to recognize that open, public networks are here to stay. Our laws and regulations must adapt to these developments,” Toomey said in a statement. “Not only might cryptocurrency and blockchain technologies be as revolutionary as the internet, they also have the potential to build wealth and financial independence for individuals who are empowered to engage in financial transactions directly with each other, free from oft-costly middlemen. He added, “That’s why it’s important Congress gets this right and ensures the United States remains at the forefront of cryptocurrency and fintech innovation.”

Coinbase’s global tax Vice President Lawrence Zlatkin recently expressed outrage at Congress for the rushed Infrastructure Bill stating it could affect “60 million Americans or 20% of the U.S. population,” as Bitboy Crypto reported.

The Infrastructure bill in question passed the Senate without any revisions made to the crypto provisions intended to fund U.S. transportation and infrastructure, as Bitboy Crypto reported. However, the bill ended up being okayed by the House without revisions and is pending a final vote which has been delayed due to politics surrounding the FY2022 bill. Despite delay a Sept. 27th deadline to vote on the Senate-passed infrastructure bill has been set by the House.

“I am committing to pass the bipartisan infrastructure bill by September 27. I do so with a commitment to rally House Democratic support for its passage,” Pelosi said in a statement. “We must keep the 51-vote privilege by passing the budget and work with House and Senate Democrats to reach agreement in order for the House to vote on a Build Back Better Act that will pass the Senate.”

Why We Probably Don’t Have To Worry About Crypto Tax, Congress Can’t Agree

Although we don’t like to get political at Bitboy Crypto, Democrats hold a narrow 220-212 majority in the House, and Republicans hold a minority of the chamber. While the Senate is divided 50-50 between both Republicans and Democrats. In this case, it’s important to provide details about the overall political situation to better highlight the votes needed to pass either bill. In addition, in typical political fashion, the Democrats have said they won’t pass the Infrastructure Bill without the $3.5 trillion reconciliation bill, as the Republicans have said they will vote against the Infrastructure Bill from passing the House for reasons unrelated to crypto and due to the reconciliation bill itself. So, Washington is just as divided as ever and the crypto provisions in the bills might fail to pass as a result of that division.

In fact, back in July, the White House itself debated over whether passing the $3.5 Trillion reconciliation add-on bill alongside the bipartisan infrastructure plan could tank the bipartisan infrastructure bill.

Of course, the reconciliation bill could still pass without all Republicans’ support, but it would require the majority of the votes or 50 Democrats in favor to avoid a filibuster. In the event of a tie, Democratic Vice President Kamala Harris would cast the tie-breaker vote and she is unlikely to vote against her party. Meanwhile, for the infrastructure bill, if just 9 Democrats vote against the bill it could fail as the Republican party (GOP) has made it clear that no one from their party will vote ‘yes’ on the Infrastructure bill if a reconciliation bill is tacked onto the bipartisan budget proposal.

If the bills were to pass without any edits made to their language within the crypto provisions defining brokers and who will be required to pay taxes. It’s important to note that the law(s) wouldn’t take effect for several years and in that time frame bills could still be introduced and eventually pass to change the law surrounding crypto digital assets.

Bitcoin is currently trading at [FIAT: $47,368.05] DOWN -1,4% in the last 24 hours according to Coingecko at the time of this report.

About Catoshi Nakamoto

c6ea0c3794492f30883e516d39b2597a?s=90&d=blank&r=g U.S. Treasury Wants Crypto Tax Rules Within $3.5 Trillion Dollar Reconciliation Add On Bill To Infrastructure LegislationActivist/Journalist, former writer - We Are Change, The Mind Unleashed, Coinivore, others. Currently writing for - Activist Post and Bitboy Crypto. Not Right or Left Apolitical. I Care About Truths (CATS.) Cryptocurrency enthusiast, I mined and lost 100+ BTC in 2010-2011. I work with - Bitboy, SoMee, CEEK, Presearch, and W3BT aka FMW Media Group. Friend of mostly everyone who isn't a dick. Just A Cool Cat.