Senators today called for a unanimous vote to revise crypto tax provisions in the $1 trillion infrastructure bill in a last-ditch effort to exempt certain users.
The Senate rejected an amendment championed by the cryptocurrency industry that exempts non-custodial crypto actors from a crypto tax reporting requirement built into the $1 trillion infrastructure bill. The original language of the bill changed tax reporting requirements to define certain actors involved in digital assets as "brokers" for tax purposes. This would require them to file 1099 tax forms with the IRS on behalf of customers, even if they did not have access to such information. (https://decrypt.co/78116/bitcoin-lobby-loses-senate-rejects-revised-crypto-tax-provisions-in-infrastructure-bill)
To clarify, for now this is merely a bill. It is not a law yet. As such, it has no effect for now. It will only become a law once submitted to the President of the United States of America and the President approves and signs it into law. Let us answer a few more questions related to this.
Should this bill become a law, will this affect you? If you are a citizen or a non-citizen but is residing in the United States of America, YES. If not, NO.
Should you worry? If you are a citizen of the United States of America, YES. If not, NO.
Will it kill the crypto industry? No, crypto projects and miners will simply find another country which is friendly when it comes to innovation and technology. If there is a loser, it will be the United States of America.
Although, you may not be from the United States, an attack against the crypto industry in whatever form is something that must be strongly abhored. An attack against the crypto industry is an attack against our fundamental rights and thus, it is not a good precedent for other countries. We are all in this together.
