Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

US Congress Likely To Vote on New Crypto Tax Bill On Saturday 7 August

US Congress Likely To Vote on New Crypto Tax Bill On Saturday 7 August

The US Congress is likely to vote on a new bill regarding new cryptocurrency taxation on August 7th. Here’s what is known of it so far.

With new regulation and taxation on the cryptocurrency industry coming from the US, the whole thing just took new turn as President Joe Biden openly supported the highly unfavorable amendment proposed earlier by Senators Mark Warner and Rob Portman. Biden’s backing seems to target proof-of-stake (PoS) assets, while mining appears untouched.

Crypto Taxation and Regulation in the United States

The recent growth of the cryptocurrency sector has set the global watchdogs to tighten their grip on the industry. The US has positioned themselves to be the leader in these initiatives, especially since Joe Biden took office. At the start of the year, some propositions by the CFTC were neglected, but new ones arose most recently – this time, with an eye on taxation.

In July, U.S. lawmakers proposed a new cryptocurrency tax policy that is expected to raise $28 billion in revenue. According to the bill, digital asset transactions worth over $10,000 have to be reported to the Internal Revenue Services (IRS).

The discussed tax revenue would form part of the funds for a $550 billion budget to improve the country’s transportation and electricity infrastructure. Meanwhile, the expanded crypto tax policy was hastily inserted into the $1 trillion infrastructure bill, which is currently before the US Congress.

What gained the crypto community’s attention and skepticism was the bill’s definition of the term “broker.” The proposition described a broker as

“any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”

This broad definition was captured by many industry participants who outlined their concerns. Those included Coinbase’s CEO, Brian Armstrong, who was one of the first to shoot down the proposition put forward by Senators Rob Portman (R-OH) and Mark Warner (D-VA).

The Opposing Proposition

Three Senators, Cynthia Lummis (R-WY), Ron Wyden (D-OR) and Pat Toomey (R-PA) worked together to draft another proposition that seemed less harsh for particular industry sectors.

The trio’s amendment sought to exempt Bitcoin miners, crypto validators, wallet creators, and protocol developers from the tax provisions. Additionally, they urged for more clarity from U.S. regulators about what falls under the “broker” category and who should be taxed.

Interestingly, Senator Portman, who spearheaded the first proposition, agreed:

However, Portman and Warner took another step through a “last minute amendment.” In it, they basically excluded proof of work (PoW) miners and sellers of hardware and software wallets from the tax provisions. Yet, it still suggests that developers and proof of stake (PoS) validators would be subject to reporting and taxation.

Read the full article: US Congress Likely To Vote on New Crypto Tax Bill On Saturday 7 August – Fintechs.fi
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×