Community Trust ScoreVerified
- Huge Outflows from Bitcoin Exchanges
- Amendments made to the Cryptocurrency Provisions Insufficient
- Americans Avoiding Paying Taxes on Cryptocurrency Income is Concerning
- How will the government pay for Infrastructure Development? Improve Cryptocurrency Tax Compliance
Bitcoin is the ancient alchemist’s dream. Huge outflows of Bitcoin from exchanges are happening over the last few days. It seems that apart from the exit of liquidity sellers, most of the market is feeling very bullish on BTC.
The community is left wondering if most of such transactions are internal transactions. Some were pushed to think in extreme terms like this is quite dangerous; imagine if BTC crashes and people can’t sell their BTC because the network only does 3tx/s.
Meanwhile, there is a lot of opposition to the cryptocurrency tax provision in the Infrastructure bill. Despite the amendments made to the bill, the text relating to cryptocurrency tax is still unworkable.
Lawmakers like Sen. Ron Wyden, Rep. Warren Davidson, and Rep. Ted Budd have voiced their concerns.
Senator Pat Toomey, expressed: “I plan to offer an amendment to fix it.”
Some changes have been made, but the latest language can still be interpreted by Treasury to cover miners, lightning nodes, and others. If Congress does not intend to do it, there are easy fixes that they can adopt.
Sen. Ron Wyden, expressed, “Americans avoiding paying the taxes they owe through cryptocurrency is a real problem that deserves a real solution.”
For clarity, the $1 Trillion Infrastructure Investment Bill is set to bring in long-awaited improvements to the roads, bridges, and mass-transit systems, eventually delivering a rare Bipartisan Victory to President Joe Biden.
This bill focuses on providing substantial resources to repair, maintain, and upgrade the nation’s physical infrastructure. If enacted, this will be the most significant US infrastructure investment in decades.
The final touches are happening, Blackburn said in a post on Twitter: “The Democrats are pushing an infrastructure bill that no one has had a chance to read.”
The crypto provision in the infrastructure bill is gaining a lot of attention.
Tim Scott expressed: “I voted no on infrastructure a week ago because there was no legislative text. My mind hasn’t changed. There’s still no legislative text or explanation on how to pay for a $1T infrastructure plan.”
One thing is obvious and concerning. The Cryptocurrency Surveillance Provisions in the Infrastructure Bill are going to spell disaster for Digital Privacy.
Many are left wondering as to why a bill that is meant for infrastructure development projects is focusing on cryptocurrency?
This provision about cryptocurrencies is covered in a section in a bill that is about relevance to cover the costs of other proposals. There is a section where it has to explain how the government will pay for the services, either by increasing taxes or improving tax compliance. The talk about cryptocurrency in the section is about enhancing tax compliance, thus penetrating deep into the activities of the cryptocurrency community. Taxing eventually breaks the element of privacy.
