US Congress passes infrastructure bill, crypto firms to report transactions to IRS

After the controversial US Infrastructure bill was passed by the US House of Representatives during the summer, all eyes were on Congress to see the outcome of the bill. The US legislative body has now voted in favour of the infamous bill.

The Congress vote came in at 226 to 206, marking a major historical point to Bitcoin and the entire crypto sector. For the bill to become law, it is awaiting signing by the US president, Donald Trump.

Bill passed amid concerns

This bill was heavily contested by the crypto community because it lacked clear definitions. Once it is signed into law, crypto firms operating in the US such as Coinbase, Binance US, and Kraken will be termed as brokers and report transactions to the IRS.

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The bill will also require crypto traders operating in the US to file 1099 forms with the IRS. Some of the requirements of filling these forms include revealing the names and addresses of clients.

Because of the requirements that crypto firms would be subjected to because of this bill, the crypto community heavily debated against this bill. One of the most contentious issues was the lack of clarity where the rules applying to exchanges would also apply to crypto miners, dApps, crypto wallet providers and custodians. It was argued that such firms could not comply with the reporting requirements as they did not have access to customer details.

Bill most likely to be passed into law

There is a high chance that the Infrastructure Bill will be passed into law because Joe Biden is a major proponent. The US president stated that the bill’s passing was a “monumental step forward as a nation.”

“The House passed the Bipartisan Infrastructure Deal, a once-in-a-generation investment that will create millions of jobs modernizing our infrastructure, and a rule that will allow passage of my Build back Better Act,” Biden stated.

The passing of the bill had a slight effect on the price of Bitcoin. The primary cryptocurrency dropped to around $59,000, but it swiftly recovered to the current $62K. Moreover, the bill did not cause panic selling among traders.

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