Infrastructure bill and crypto

Monday, August 2, 2021 2:39 PM
To pay for $28 billion of the total, the infrastructure bill includes a provision to expand the definition of a broker for tax purposes to cover “any person who (for consideration) is responsible for and regularly provides and services effectuating transfers of digital assets.” In practice, this means that crypto miners, validators on proof-of-stake networks, and possibly even those active in decentralized finance markets (think liquidators or governance-token holders) will have to meet IRS reporting requirements and file 1099 forms. These forms include customer data such as name, address, and tax identification number (which, in the case of self-employed individuals, can be a social security number). The ostensible reason for the provision is to ensure people pay taxes on their crypto earnings—legislators reckon that it can lead to $28 billion more in payments—but it ratchets up financial surveillance to ensure such a result. Jake Chervinsky, general counsel at DeFi lending protocol Compound, tweeted, “It’s literally impossible for non-custodial actors like miners to get the information they need to do Form 1099s. In practice, this could mean a de facto ban on mining in the USA.”

23 comments

I find crypto to be dodgy AF, but Democrats would tax breathing if they could. There will never be enough revenue sources to fund the progressive agenda.
Tetradon
3 years ago
So there's an attempt to foil money laundering and tax evasion. How terrible is that.
RandomMember
3 years ago
Are you suggesting that people haven't been properly reporting their crypto earnings and paying the appropriate taxes on their profits? I'm shocked!!
whodey
3 years ago
Good luck with that @gov
SanchoRG
3 years ago
Enforcement will be impossible.
tin man
3 years ago
I'd like for the US to finally crack down on crypto. Mining is one issue then there's the whole issue of tether and shadey price manipulation. Bitcoin to 1k by the end of the year!
BitCoinHodler
3 years ago
Time for crypto currency to go to the dustbin of history. Its a pyramid scheme and nothing else.
skibum609
3 years ago
y u discuss any sort of bill in front room? dont u know that politics in the front room makes baby jesus cry? u dont want to make baby jesus cry do u? thats what bad ppl do
DoctorPhil.
3 years ago
@Tincan: "Enforcement will be impossible." _________________ Why? Didn't the FBI track down bitcoins in that colonial pipeline ransomware case? Bitcoin: preferred by mindless Libertarian gold-standard types, drug-dealers, and tax-evaders all across the globe.
RandomMember
3 years ago
Welfare and leeching off others is preferred by the useless losers called the base of the Democratic party.
skibum609
3 years ago
No @Skibirther, only black and brown oeople leech off tge system /S
RandomMember
3 years ago
I think its pretty funny how the right wing anti crypto people see it as a leftist thing. I'm a progressive and I hate bitcoin to its core, and I consider it more of a right wing libertarian thing.
BitCoinHodler
3 years ago
^ you need to remember left wingers are liberal, right wingers are conservative and a bird with only one wing flys in a circle like a libertarian they are all nut jobs. Most folks fly straight meaning they’re centrists, and that’s really where this country is.
twentyfive
3 years ago
^ @25, I loved your saying a few weeks back, that a libertarian is someone who has an answer for everything but a solution for nothing. I'm center-right. On that liberal vs. conservative / libertarian vs. authoritarian graph, I'm a tick more conservative and a tick more libertarian than the norm. I'm also a long-time investor (formerly for a living) and shit like meme stocks and crypto scare me. Why? Because nothing underlies them other than the crowd's whims. I know a lot of stocks are frothy but at least somewhat tethered to earnings, dividends, M&A valuations, but crypto and meme stocks don't even have that. I can't value Elon Musk's tweets or Amazon's rumors. They're Dutch tulips, which have value insofar as others believe they do. What happens if one buffalo sneezes and starts a stampede? Something's going to collapse, and I won't be the one getting trampled.
Tetradon
3 years ago
^ I agree most of the successful investors I know are smart enough to only invest in what they understand, with crypto most I’ve the actual users have been criminal actors, I had a small position in Bitcoin for a bit, and I did make some money, but the more I see of it, the less I like the issues surrounding the debate, so for now I’m out and unless something changes I can’t see myself in the mix.
twentyfive
3 years ago
Another provision in the “infrastructure” bill would allow taxation based on miles driven. It will be months before all the bill’s provisions are known.
mark94
3 years ago
I love crypto. To bad I don't own any
SanchoRG
3 years ago
bad mark remember: no politics in the front rom. ur making baby jesus cry dont make me thwack u on the nose with a rolled up newspaper
DoctorPhil.
3 years ago
Today's WSJ, article about SEC chief getting involved to police the crypto markets. The wild-west days of being able to trade assets, derivatives, lend, borrow against cryptos without any oversight may be coming to an end. Look for the SEC to crack down on "stablecoins" which are considered dangerous enough to destabilize the financial system. [view link]
RandomMember
3 years ago
This is literally the most gentle approach to crypto I can imagine the government taking. The US government had a vested interest in having a monopoly on currency. I'm surprised they haven't come down harder on crypto.
JamesSD
3 years ago
"I'm surprised they haven't come down harder on crypto." Should anything the US Government does really surprise anyone anymore? Or any government, really. Now if the feds decided to back Texas' completely outdated policies on strip clubs then I'd start to wonder.
wallanon
3 years ago
Here’s another surprise in the “infrastructure” bill a section titled, ‘ADVANCED IMPAIRED DRIVING TECHNOLOGY,’ which mandates new vehicles include ‘a system that … passively and accurately detect[s] whether the blood alcohol concentration of a driver of a motor vehicle is equal to or greater than the blood alcohol concentration” of .08, in which case the system would ‘prevent or limit motor vehicle operation.’
mark94
3 years ago
[view link] This is one of the people in charge of regulating crypto. I'm not afraid lol. Bail out crypto how fucking stupid do you have to be? What is she going to send money to Satoshi? How do you bail out crypto god damn she is really dumb.
SanchoRG
3 years ago
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