The US President approved a law on expanded taxation of cryptocurrencies – Bits Media

Joe Biden signs infrastructure bill, establishing reporting requirements for brokers and tightening rules for cryptocurrency companies.

On Monday, US President Joe Biden signed an infrastructure bill into law. $1 trillion. According to the adopted law, which introduces tougher rules for cryptocurrency companies and expands reporting requirements for brokers, Market participants will be required to report in their tax returns transactions with cryptocurrencies worth more than $10 000. 

After signing the law, Joe Biden thanked Senators Kyrsten Sinema (Kirsten Cinema) and Rob Portman (Rob Portman), and also Mitch McConnell (Mitch McConnell) for their role in getting the bill through the Senate.

“We have been talking for too long about the best economy in the world. Today we, finally, let's achieve this. America is moving again, and your life will change for the better", He said.

Note, that earlier a group of senators proposed a compromise amendment, which would free up software developers, transaction validators and node operators from falling under the definition of a cryptocurrency broker. The proposal did not pass for Senator Richard Shelby (Richard Shelby), who objected to a compromise amendment to the bill. but, it was decided, that miners and stakers will not fall under the definition of a cryptocurrency broker.

In August, the US Senate voted to pass a bipartisan HR bill 3684 without specifying the definition of a cryptocurrency broker. Before the signing of the law by the US President, Senator Cynthia Lummis (Cynthia Lummis) I tried again to clarify, according to which transaction validators, Node operators and software developers will not be considered brokers. According to the politician, The bipartisan infrastructure bill as it stands now defines a broker as "any person, who is responsible for regularly providing any services for the transfer of cryptocurrencies on behalf of another person". This wording may negatively affect the development of the crypto industry in the United States. However, it was not possible to pass the amendment before the president signed the bill..

The adoption of a law unfriendly for cryptocurrencies could well be the reason for a fall in the price of major cryptocurrencies. In one day, Bitcoin and Ethereum lost more than 7% and trade around $60 800 and $4 323, respectively.