In 2021, the US House of Representatives voted for the Bipartisan Infrastructure Bill for crypto tax provisions. With 218 ayes, the house voted in favor of the bill containing cryptocurrency tax reporting requirements. And with US President Joe Biden’s signature, it became a law. This move by the US government has shaken the industry, which was earlier deemed as a crypto-friendly nation. The consequences – it made that market turn red and continues to stay bearish even in 2022. It is still being seen as an unfavorable move for the crypto industry’s growth, which is fairly new to the world. Key Highlights of the Bipartisan Infrastructure Bill Crypto brokers must report information about their crypto transactions to the Internal Revenue Services (IRS) Must comply with KYC norms for all transactions above USD 10,000 Digital assets are defined as any digital representation of a given value of which the records are maintained cryptographically on a distributed ledger or any similar technology specified by the senator Any business engaged in the following must report to IRS: Validating distributed ledger transactions Selling hardware or software whose sole function is to permit people to control their private keys Developing digital assets or services and their corresponding protocols used by a person that may not be a customer of the service or asset developer What US House of Representatives State? Under the Bipartisan Bill, the p...
