New US bill to bring rules for crypto trading that will bring billions in tax revenue

Crypto trading in the US is at a major crossroads, and it is unknown which way it may take in the foreseeable future. The country’s government is in the process of bringing new crypto regulations, that the US Blockchain Association is battling with every resource it has at its disposal. The new bill is still working its way through the Senate, although it threatens to become a law and change crypto trading forever.

Essentially, the bill is 2,702 pages long, and it acts as an infrastructure bill, targeting efforts to modernize things like electric car charging stations, bridges, water pipes, roads, internet service, and many other systems. The way it plans to do this is by tackling crypto tax evasion.

What is the problem?

According to the bill, it is expected that, if it becomes the law, it could raise the tax revenue by $28-$30 billion over the next decade by cracking down on all those who are not reporting taxable crypto transactions.

The problem is that only a handful of exchanges are reporting taxable transactions to the IRS, meaning that the bill would force them to start doing it through stricter rules. Indeed, this is true for all businesses handling crypto, who would have to report crypto purchase and sales prices, while every crypto transaction worth $10,000 or more would have to be reported to the IRS.

The Blockchain Association is a lobbying group that is trying to fight against the bill, saying that this would burden both individuals and entities, forcing them into a position where they must provide information that they just don’t have. Essentially, individual players in the crypto industry would be unable to comply, even if they were perfectly willing to do so.

The Blockchain Association warns that the reporting requirements are impossible to fulfil and that they could thwart critical investments in the economy and communities in the entire country. The most probable outcome is that businesses dealing with crypto would likely go overseas, while the US leadership in the crypto space would crash.