The US House of Representatives has sent a $1 trillion bill focused on improving the US's infrastructure with the help of unclear cryptocurrency taxation for President Biden to sign into law. The bill, which passed Congress with a final vote of 228–206, considers cryptocurrency-related organizations as "brokers," which means they will have to report their activity to the IRS.
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If and when signed by the President, the bill will require the US-based cryptocurrency business to report to the IRS every transaction above the $10,000 threshold. It is noteworthy that the definition of a "broker" remains unclear even though the market criticized the bill in its approved form as overly impractical and broad.
Coinbase CEO, Brian Armstrong, highlighted the bill "makes no sense" as it requires even smart-contracts to be treated as a "broker" with massive reporting obligations. According to Bloomberg, cryptocurrency investors would have to worry about the so-called "wash sale" rules beginning in 2022.
"Those rules bar investors from claiming a deduction when they sell an asset at a loss if they buy a "substantially identical" asset within 30 days before or after the sale," the article says.
As iHodl reported, the Congressional Budget Office (CBO) estimates that the notorious bill would add over $250 billion to deficits over 10 years. President Biden, in turn, believes that the bill is going to create "millions of jobs" modernizing roads, bridges, broadband, and "all range of things."
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