US Tax Bill Seeking USD 28B From Crypto Clears 1st Test, Amid Strong Criticism

  • July 29, 2021
  • Sead Fadilpašić
  • 56

A US bipartisan infrastructure bill that might raise USD 28bn from crypto investors has been voted to advance, with a number of crypto industry insiders strongly opposing it.

The US lawmakers are looking into tightening the regulatory rope around crypto to squeeze more money out of the sector by applying new information reporting requirements - thus raising more in taxes.

The bill passed the first test Wednesday evening and was voted to advance.

Per Forbes, this is a strong signal that it has a chance at becoming law, but that "it will still need to pass the House, where progressives are demanding it be tied to a USD 3.5trn spending package."

The Cryptoverse is strongly criticizing the bill, finding it unfair, counterproductive, hypocritical, and destructive. "They've ruined they're money so now they're coming for ours," commented Founder of Quantum Economics, Mati Greenspan.

According to Kristin Smith, executive director of the Washington-based trade group Blockchain Association, the US Senate's deal is "hugely problematic." Bloomberg quotes her as saying that the provision could push some companies overseas.

Executives in the cryptocurrency industry argue that certain companies that may fall under this provision simply do not have the ability to collect the information that it calls for.

"We’re pushing every lever right now to change it,” added Smith.

Maya Zehavi, a blockchain-focused entrepreneur and Founding Board Member of the Israeli Blockchain Industry Forum, suggested that the lawmakers are hypocritical saying that "crypto is good enough to tax but not good enough to engage in productive regulatory discussions that don’t involve keeping the same TBTF [too big to fail] gatekeepers in place."

Others too suggested the lack of discussions with the crypto sector and notice to crypto users on a decision of this magnitude.

The US Senate is about to vote on an “infrastructure” bill that could make sweeping changes to crypto industry. The…

— David Bailey🌋 #FreeRoss (@DavidFBailey)

And the discussions continue, with some finding that this tax would be difficult to enforce.

just setting up my twttr

— jack (@jack)

As for the bill itself, per the White House fact sheet, the US Senate and President Joe Biden struck a bipartisan infrastructure deal that includes USD 550bn for transportation and power systems.

And a part of this number would make an additional USD 28bn in taxes from cryptocurrency transactions.

Additional rules would be imposed on crypto brokers, requiring them to report transactions of digital assets, including virtual currencies, to the Internal Revenue Service (IRS) - all businesses would have to report crypto transactions of more than USD 10,000.

"In the years ahead, the deal will generate significant economic benefits," reads the fact sheet. "It is financed through a combination of redirecting unspent emergency relief funds, targeted corporate user fees, strengthening tax enforcement when it comes to crypto currencies, and other bipartisan measures, in addition to the revenue generated from higher economic growth as a result of the investments."

This proposal comes comes amidst the IRS enforcement officials' increasing warnings that crypto is a growing escape zone for people looking to hide their income.

Senator Rob Portman of Ohio, the lead Republican in the infrastructure talks, was quoted by Bloomberg as saying that concerns about crypto transparency have been building in Congress for some time, saying "everybody’s been talking about the appropriate way to provide more reporting in particular and that leads to better compliance."



The views expressed in this article are the author's own and do not necessarily reflect the view of News-crypto. News-crypto shall not be held liable under any circumstances for any losses, damages or expenses arising from the use of any content mentioned in this article.

The information contained on this website is provided for informational purposes only, with no warranties, or guarantees made as to the accuracy, completeness or timeliness of it. News-crypto assumes no liability or responsibility for any errors or omissions in the information contained on this site. We strongly encourage you to conduct your own research before taking any action.

This site may contain copyrighted material, the use of which has not always been specifically authorized by the copyright owner. If you wish to use the copyrighted material from this site for the purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. Authors or publishers who claim ownership of copyrighted articles reprinted on this website and wish for the content to be removed may email us directly at

If you would like to connect with us about any of the distributed content or other inquiries, please email us at with the relevant documentation.