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Sunday, December 4, 2022

New Cryptocurrency Tax Legislation in The US to Raise $28 Billion

The American lawmakers proposed new cryptocurrency taxation that would raise nearly $28 billion in extra tax revenue. As part of it, digital asset investors in the US would have to report transactions that exceed $10,000 to the International Revenue Service.

The Senate Aims to Collect More Taxes

According to a recent Bloomberg report, the American government aims to implement stricter rules on companies and people dealing with digital assets. The proposed new taxation law would require investors to report their crypto transactions of over $10,000 to the International Revenue Service (IRS). With this new legislation, the lawmakers expect to raise $28 billion in revenue.

Main senators from both the Republican and Democratic parties revealed that the government would add the funds to the $550 billion budget designed to renovate the country’s transportation and electricity infrastructure.

The lead Republican Senator Rob Portman of Ohio said that Congress expressed a united opinion regarding future cryptocurrency reporting and taxation:

“Everybody’s been talking about the appropriate way to provide more reporting in particular and that leads to better compliance.”

So far, the Biden administration has been requesting local banks and trading venues to report their cryptocurrency transactions to the IRS. Added to it, the upcoming move would aim to reduce the widening tax gap in the USA.

Are Cryptocurrencies a Threat to The US Financial System?

As CryptoPotato recently reported, the crypto skeptic US Senator Elizabeth Warren criticized digital assets as in her opinion, they would harm the American monetary system. The Democrat sent a letter to the US Treasury Secretary – Janet Yellen – and asked for greater regulation for cryptocurrencies. Moreover, Warren insisted on a complete ban for them:

“The hype, the volatility, the wild claims that turn out to be false. As the crypto market grows, so do the risks to our financial stability and our economy.”

The Senator also argued that virtual currencies are not as decentralized as it seems. She opined that many of them are under the control of founders and miners. Warren went further, labeling those in the industry as evil masterminds:

“Instead of leaving our financial system at the whims of the giant bank, crypto puts the system at the whims of some shadowy, faceless group of super-coders and miners, which doesn’t sound better to me.”


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