President Joe Biden signed the $1 trillion infrastructure bill in front of a crowd of reporters, lawmakers, and union workers on Monday in a ceremony in front of the White House.
While the bipartisan bill is intended to support roads, bridges, internet access, solar panels, electric vehicle charging stations, and other significant infrastructure projects, lawmakers incorporated wording that applies to cryptocurrencies before it was passed by both chambers of Congress.
In its current form, the measure imposes stricter regulations on enterprises that deal in cryptocurrencies and expands broker reporting obligations. Digital asset transactions worth more than $10,000 must now be disclosed to the Internal Revenue Service, according to the bill. A group of senators suggested an amendment to the law in August that would have clarified the crypto tax reporting obligations, but it was not approved.
Notwithstanding a claimed last-ditch effort by Senators Ron Wyden and Cynthia Lummis to amend the tax reporting rules to “not apply to individuals developing blockchain technology and wallets,” Biden signed the infrastructure legislation. It’s uncertain how Wyden and Lummis’ bill would influence current infrastructure legislation, which has to pass both the Senate and the House before reaching the president’s desk.
When the bill passed in the Senate, Pat Toomey slammed it, saying it was “too expensive, too expensive, too unpaid for, and too threatening to the innovative cryptocurrency industry.” He described the demand for crypto tax reporting as “potentially unworkable.”
The crypto requirement is scheduled to go into effect starting in 2024.