The US Infrastructure Act, which affects the crypto industry, has been signed. And you?

Signature of the 'Infrastructure Law'

On November 15, US President Biden signed the "[Infrastructure Act] (1)", which came into force. With a total investment of $ 1.2 trillion, this measure covers all aspects of U.S. infrastructure, including transportation, roads and bridges, ports, railways, energy and general infrastructure, as well as plumbing. and plumbing.

This bill will also have a major impact on the cryptocurrency market. "" In fact, he published an article about it three months ago. The bill says that the 'cryptocurrency' agent must disclose trading information to the police. Taxes, and the definition of a broker is 'anyone who promotes trading in digital assets.' On behalf of of others, the definition of "agent" is too broad. So there are lawmakers, Democrats and Republicans alike who, who have protested, have declared you a direct defeat.

After the passage of the “infrastructure bill” in the Senate, in fact, during the controversy in September, some members of the House of Representatives called for an amendment to the ambiguous definition of “worker”, but in fact, like most bills that passed the Senate, the "infrastructure bill" It still awaits in the House of Representatives, and no objections, but it was eventually used after Biden's sign.

Impact on the cryptocurrency market

Since the bill was introduced, it also means that the US cryptocurrency market has:

1. “Intermediaries” must send details of trades over $ 10,000 to the IRS.

2. If you are accepting more than $ 1,000 in cryptocurrency as payment, you should verify the information sent, including the candidate's Social Security Number (SSN) and other printed business related information and submitted to the IRS within 15 days.

In the cryptocurrency space, the exchange rate already has an acquired role, but at the same time faces more difficult tax problems than investors.

After Biden signed the bill, Bitcoin fell 10% and Bitcoin fell below $ 60,000. The thinking of the cryptocurrency market regarding the bill is clear.

turning point for the future

The problem also arises from the fact that the definition of “intermediary” in the “infrastructure law” is too broad. Due to the nature of blockchain, according to current content, miners and all-node servers that handle blockchain network activities fall under the category of “operators”, like Defi networks that do a lot of business. It is not known at this time what he will do after leaving the post.

Regarding the concept of "broker", both parties are still working on it. House of Representatives Ron Wyden, Democrat of Oregon, and Republican of Wyoming Cynthia Lummis, have joined [Recommendations] (3) to reduce cryptocurrency tax revenues. Both Wyden and Lummis are crypto enthusiasts, and the August patch is usually written by them. However, according to Bloomberg [report] (4), it is not known when the bill they are calling for will be voted on, and there is an indication in the bill that it could follow until such time as the bill of construction law is signed.

Therefore, although there is always a change in the direction of "intermediary" in the infrastructure law, the situation cannot be reversed in the case of cryptocurrency.

[1] : https://www.congress.gov/bill/117th-congress/house-bill/3684

[2] : https://mp.weixin.qq.com/s/Vjxhtp78Z7D2pVjr6mcJtQ

[3] : https://www.scribd.com/document/539849024/Lummis-Wyden-Bill

[4] : https://www.bloomberg.com/news/articles/2021-11-15/senators-seek-crypto-reporting-fix-as-biden-signs-infrastructure