Cryptocurrency Industry, Bi-Partisan Group of Senators Criticize Provision of Senate-Passed Infrastructure Bill

On August 10, 2021, the U.S. Senate passed the USD 1 trillion infrastructure bill, known formally as the Infrastructure Investment and Jobs Act (Infrastructure Bill). The Infrastructure Bill includes provisions for approximately USD 550 billion in new federal spending over 10 years on various transportation, broadband, utilities and other infrastructure projects.

Various revenue raising provisions are earmarked to offset the additional spending. Among those revenue raising provisions, the Infrastructure Bill contemplates that USD 28 billion in income tax attributable to the disposition of digital assets will be collected over 10 years. The Infrastructure Bill anticipates generating this revenue by facilitating compliance with digital asset users’ tax payment obligations by imposing reporting requirements on ‘‘brokers’’ of ‘‘digital asset’’ transfers. Digital assets for purposes of these amendments is meant to include cryptocurrencies.

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* Article was first published in the Tax Management Memorandum