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Will new crypto taxes fund $1 trillion bipartisan infrastructure bill 2021

Cryptopolitan


TL;DR Breakdown

  • Crypto taxes are probable sources for the $1 trillion infrastructure bill
  • Increased reporting and new formats for reporting crypto transactions on the table

The newly introduced bill in the United States Senate plans to spend $1 trillion on infrastructure within the United States has raised alarm bells in the crypto realm. An agreement was reached between a bipartisan senator’s group in what could be termed a sudden shift in the status quo. They agreed on key points related to the giant infrastructure package.

However, months of negotiations have not delivered much good news for the crypt realm. To raise about $1 trillion in spending budget, the bill aims to levy taxes, and crypto seems to be in the eye of the senators. The complete text of the bill has not yet been released.

Bill aims to raise $28 billion from crypto taxes

As per sources, the infrastructure bill plans to raise $28 billion by taxing crypto transactions. This can spell a bad omen for investors and traders alike who will have to undertake more compliance and report to authorities.

Digital asset transfers will have to be reported in updated formats along with more strict compliance. The transactions also cover decentralized exchanges and P2P marketplaces. Additionally, cryptocurrencies are part of the wider spectrum of digital assets. The bill aims to update the broker definition and include the current realities of the digital asset market.