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Congress Passes $1.2 Trillion Infrastructure Bill — Crypto Advocates Criticize Amended Broker Definition, Tax Code 6050I Skip to main content

Congress Passes $1.2 Trillion Infrastructure Bill — Crypto Advocates Criticize Amended Broker Definition, Tax Code 6050I

Congress Passes $1.2 Trillion Infrastructure Bill — Crypto Advocates Criticize Amended Broker Definition, Tax Code 6050I

Congress has passed the Biden administration’s bill aimed at improving infrastructure, fighting climate change, and bolstering social services. The $1.2 trillion infrastructure bill, which also expands the definition of a broker, awaits U.S. president Joe Biden’s signature after passing with a vote of 228–206 on Friday.

Bipartisan Infrastructure Bill Passes to the Tune of $1.2 Trillion

The bipartisan infrastructure bill has been a hot topic in recent times and on Friday the bill passed in Congress and now awaits president Biden’s approval. The passing followed weeks of delays and debates as 13 Republicans joined a large majority of Democrats in order to help forward the proposal.

Bitcoin.com News reported on the bill three days ago when it was slimmed down to $1.75 trillion and lawmakers whittled the number down once more before the passing to $1.2 trillion. From the State Dining Room, Biden celebrated Congress passing the bill and said with a smile: “Finally… Infrastructure week.”

The 1,600-page proposal discusses incentives to fight climate change, offers “universal pre-K child care,” and an allocation of funds for free computers. Estimates say around $550 billion will go towards fighting the alleged climate crisis in the United States.

$47 billion will be dedicated to flooding, coastal, and climate resiliency and $39 billion to “modernize traffic.” About $5 billion will be dedicated to low and zero-emissions buses, $110 billion for roads and bridges, and $7.5 billion toward electric vehicles and power charging developments.

Broad Definition of a Broker, Tax Code Section 6050I

Now while adding another trillion to the mountain of debt the U.S. already owns is unfavorable, most crypto proponents are more concerned about the cryptocurrency tax provision.

Senators who helped frame the bill slipped in a provision change that says organizations that deal in trading digital assets are considered brokers. In fact, digital currency proponents are worried that the definition of a broker is extremely broad, and crypto advocates think that alongside exchanges, software engineers and miners could also be targeted.

The way the bill is written, the main concern is the reporting requirement to the Internal Revenue Service (IRS) would force all brokers to file 1099 forms and declarations. Additionally, there is concern about the amendment to Tax code section 6050I, which essentially requires individuals and businesses that have received $10K in cash or a bank wire to file the IRS Form 8300.

The form mandates businesses and individuals to follow Know-Your-Customer (KYC) procedures and to record the sender’s name, address, and social security number. Detailed information on the reasoning behind the funding must also be accounted for in Form 8300.

Meltem Demirors: ‘Infrastructure Bill Is Inherently Anti-American’

Even after the bill passed in Congress, crypto supporters told their fellow Americans to call their representatives to fix the amended Section 6050I. One crypto advocate tweeted:

Everyone in the cryptocurrency community must contact their congressperson. Demand they oppose the clause snuck in [the] infrastructure bill that would amend Section 6050I of tax code, it’ll destroy the defi industry. It is extremely important we kill this.

Coinshares CSO Meltem Demirors also complained about the passing of the bill. “This bill is unconstitutional and inherently anti-American. Private citizens have the right to financial privacy and financial freedom. Absolutely shameful to see this,” Demirors said.

President Biden called the bill a “once-in-a-generation” investment. “It puts us on a path to win the economic competition of the 21st century,” Biden explained.

What do you think about Congress passing the $1.2 trillion infrastructure bill? Let us know what you think about this subject in the comments section below.

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