Currently infrastructure bill to tax crypto and require 1099s

[WeToddDid2]

https://twitter.com/x/status/1421150350896209921

https://decrypt.co/77326/not-a-drill-infrastructure-bill-could-sink-american-crypto-industry

"This is not a drill," writes Jake Chervinsky, an influential crypto lawyer and a sober voices in a hype-prone industry. In a must-read Twitter thread, Chervinsky explains how the $550 billion bill—which is primarily about roads and bridges—could shiv American crypto companies.

The pain comes in the part of the bill that explains how the U.S. will help pay for those roads and bridge. Namely, the bill states that Uncle Sam plans to cover $28 billion of the costs by squeezing crypto brokers.

The trouble is that the bill defines "broker"—a term normally used to describe the likes of Coinbase and Robinhood—as basically any business that touches crypto. As Chervinsky writes, "This definition is so broad, it could apply to nearly every economic actor in the US crypto industry, if read literally." The catch-all "broker" term could apply to miners, DeFi startups, and others who will have to file customer forms with the IRS, a task that is in some cases impossible.

 

[Overnight]

Look at it this way...It is like the US government is now treating crypto as a legitimate asset. Something that is real.

 

[WeToddDid2]

Look at it this way...It is like the US government is now treating crypto as a legitimate asset. Something that is real.

I was thinking about digital privacy as the below linked article explains.

https://www.eff.org/deeplinks/2021/...n-buried-infrastructure-bill-disaster-digital

The Cryptocurrency Surveillance Provision Buried in the Infrastructure Bill is a Disaster for Digital Privacy

Make no mistake: there is a clear and substantial harm in ratcheting up financial surveillance and forcing more actors within the blockchain ecosystem to gather data on users. Including this provision in the infrastructure bill will:

• Require new surveillance of everyday users of cryptocurrency;
• Force software creators and others who do not custody cryptocurrency for their users to implement cumbersome surveillance systems or stop offering services in the United States;
• Create more honeypots of private information about cryptocurrency users that could attract malicious actors; and
• Create more legal complexity to developing blockchain projects or verifying transactions in the United States—likely leading to more innovation moving overseas.

 

[Snarkhund]

I was thinking about digital privacy as the below linked article explains.

https://www.eff.org/deeplinks/2021/...n-buried-infrastructure-bill-disaster-digital

The Cryptocurrency Surveillance Provision Buried in the Infrastructure Bill is a Disaster for Digital Privacy

Its a disaster for tax evasion but if you already file legit then it just means there are 1099s to backup what you are already telling the IRS.

All the exchanges are already KYC so its not a show stopper to sling 1099s. Wallets with built-in exchange and staking that are not KYC will have a problem including one that I use. Mining pools are also IP-based, no personal information they just mine to a non-exchange public address.

The US govt has been able to track transactions for a long time. Its the money grab part that is new and its the on and off ramps that will be controlled not the networks. People sweeping their exchange accounts into private wallets need to understand that those transactions are completely in the open and are being tracked.

 

[WeToddDid2]

Its a disaster for tax evasion but if you already file legit then it just means there are 1099s to backup what you are already telling the IRS.

All the exchanges are already KYC so its not a show stopper to sling 1099s. Wallets with built-in exchange and staking that are not KYC will have a problem including one that I use. Mining pools are also IP-based, no personal information they just mine to a non-exchange public address.

The US govt has been able to track transactions for a long time. Its the money grab part that is new and its the on and off ramps that will be controlled not the networks. People sweeping their exchange accounts into private wallets need to understand that those transactions are completely in the open and are being tracked.

Note to self: Don't buy anymore kilos with crypto.

 

[smallfil]

If you make monies from crypto currency trading, you should be taxed like every stock trader on Wall Street. Why should you be exempted from your capital gains? Crypto currency trading has facilitated drug dealers and other criminal activities. Tighter regulation by the government is needed.