A bipartisan group of US senators says it will pass a bill to amend the cryptocurrency tax reporting law in the new infrastructure legislation to foster innovation.
The new bill clarifies that the reporting requirements exempt blockchain technology and wallet developers, but crypto traders must pay their accrued taxes.
The proposed bill contains some improvements to the current cryptocurrency provision law that investors say could restrain digital currency growth.
The crypto law in the $550 billion infrastructure legislation compels firms offering digital assets transfer services to disclose user information. Opponents argue that miners and software developers were required to disclose to IRS data they didn’t have.
Square’s CEO Jack Dorsey and Coinbase’s Brian Armstrong have rallied behind the amendment of the cryptocurrency reporting provisions.
The Joint Committee on Taxation had anticipated raising $28 billion in 10 years from implementing the crypto rule.
Source: Bloomberg