The US Senate is looking to tighten cryptocurrency tax rules to make more money for an infrastructure deal. After a long stalemate between Republicans and Democrats, which lasted for weeks, the senators decided on a last-minute addition to crypto tax proposals.
Bloomberg Law reports that the new crypto tax proposal hopes to raise $28 billion. This amount is more than 5% of the target for a large infrastructure mega plan, pegged at $500.
The Senate has asked the Internal Revenue Service (IRS) to make its taxation methods stricter for all crypto-related businesses and services, and also broaden reporting requirements. According to Bloomberg Law, all crypto transactions of at least $10,000 must be reported to the IRS.
The crypto community did not receive the Senate’s news with open arms. The Blockchain Association has described the plan as “hugely problematic”, with executive director Kristin Smith noting that many related businesses cannot provide the data the IRS would be asking for. The Association has also suggested that it will do everything within its power to alter the Senate’s proposal.
Congressman Tom Emmer of Minnesota has also said the plan is harmful to innovators and investors. Taking to Twitter, Emmer said using the crypto sector to fund the infrastructure plan will “ do nothing but leave our country in the dust.”
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