The quandary over cryptocurrency is reaching new levels of disagreements as the bipartisan $1 trillion infrastructure bill comes to a crossroads over a provision that has the potential to bring in big bucks on past and future taxes, according to media reports on Friday (Aug. 6).
Although the crypto amendment to the infrastructure bill was approved by the Senate, the proposed stricter mandates have raised ire from the electronic currency camp. The White House is seemingly going toward supporting the tougher rules, which are not as friendly to bitcoin and its cousins.
Cryptocurrency advocates argue that the bill requires too much oversight into the sector, which would result in traders having to adhere to the IRS mandates equal to those of stock and bond brokers.
The bill creators — Sens. Rob Portman, R-Ohio; Mark Warner, D-Va.; and Kyrsten Sinema, D-Ariz. — put forth an amended document on Thursday (Aug. 5), per CNBC.
Read more: Crypto Tax Laws Slipped Into $1T Infrastructure Bill
The White House has backed Sen. Portman’s amendment, crediting the trio for developing a measure that was more understandable and would work “to reduce tax evasion in the cryptocurrency market,” said Andrew Bates, President Joe Biden’s deputy press secretary.
“The administration is pleased with the progress that has yielded a compromise sponsored by Senators Warner, Portman and Sinema to advance the bipartisan infrastructure package and clarify the measure to reduce tax evasion in the cryptocurrency market,” Bates said in a statement.
How to regulate cryptocurrencies is a bipartisan debate that ranks higher in purpose year after year. Officials have connected virtual currencies to money laundering and other black-market activities.
Biden’s White House has been clear that crypto regulation is a necessity. Moreover, the U.S. Treasury Department has already said that crypto transactions higher than $10,000 should be reported to the IRS.