Last-minute additions to the bipartisan infrastructure deal in the U.S. Senate prompted lawmakers to propose an increase in taxation on cryptocurrencies to raise an additional $ 28 billion.
The proposal provides for stricter rules for companies that deal with cryptocurrencies and expands the information requirements for brokers and requires that digital asset transactions greater than $ 10,000 be reported to the Internal Revenue Service.
Senator Rob Portman noted that Congress has raised concerns about crypto reporting and taxation requirements for some time:
“Everyone was talking about how, in particular, more reports can be properly provided and that this fact leads to better compliance.”
After weeks of discussions between Republicans and Democrats, cryptocurrency measures were hastily incorporated into the deal on Wednesday. The proceeds from the new taxes on cryptocurrencies are to partially finance an investment of 550 billion US dollars in the transport and electricity infrastructure.
The digital asset industry is already lobbying against the proposal; the executive director of the Blockchain Association, Kristin Smith argues that many of the companies that would be subject to the new regulations are unable to gather the necessary information.
“We are now pressing every lever to change it”he said, describing the proposed measures as “enormously problematic”.
The proposal comes at a time when crypto assets are increasingly coming under regulatory oversight in the United States.
On Tuesday the provisional auditor of the currency, Michael Hsu announced that regulators are investigating the commercial paper stocks that back the great stablecoin Tether (USDT).
Tether has been criticized for about half a decade for its opaque reservations and failure to comply with promised audits. In May, the company released a breakdown of its reserves showing that USDT is 49.6% covered by commercial papers.
During a hearing on cryptocurrencies before the United States Senate Committee on Banking, Housing, and Urban Affairs that same day, Law professor Angela Walch also called for greater supervision of the mining sector.
Walch highlighted the possibility of miners doing business on the blockchain and redirecting miners ‘extractable value as important issues that didn’t get on lawmakers’ radar.
On July 19, the US Treasury Secretary Janet Yellen urged more regulation of stablecoins and stablecoin issuers during a meeting of the president’s task force on financial markets. The group expects to publish a draft regulation on stablecoins in the coming months.