Friday, September 17, 2021

U.S. Treasury Secretary Janet Yellen is against cryptocurrency tax amendment: Report

The Takeaway:

U.S. Treasury Secretary Janet Yellen has reportedly raised objections to lawmakers about the cryptocurrency tax amendment to the $1 trillion infrastructure bill.

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U.S. Treasury Secretary Janet Yellen has reportedly raised objections to lawmakers about the cryptocurrency tax amendment to the $1 trillion infrastructure bill that is supported by the crypto community. Earlier, the U.S White House had announced its support for a competing amendment. One amendment is sponsored by Senators Mark Warner, Rob Portman, and Kyrsten Sinema. The other, which has gained the support of the crypto community, is sponsored by Senators Ron Wyden, Cynthia Lummis, and Pat Toomey.

 

Treasury Secretary Janet Yellen is reportedly exerting influence on lawmakers regarding crypto taxation. 

According to Washington Post reporter Jeff Stein, Treasury Secretary Janet Yellen spoke with lawmakers and raised objections to the amendment sponsored by Senators Toomey, Wyden, and Lummis. The reporter tweeted, citing sources familiar with the matter: “Treasury Secretary Janet Yellen has been privately lobbying lawmakers against the Wyden-Lummis-Toomey crypto amendment, as White House seeks to fend off push to limit new regulatory authorities.” As reported earlier, the White House had supported the amendment sponsored by Senators Mark Warner, Rob Portman, and Kyrsten Sinema.

 

The amendment requires payments worth more than $10,000 to be reported to the IRS. 

The cryptocurrency tax proposal in the infrastructure bill incorporates two key parts. The first requires payments worth more than $10,000 to be reported to the Internal Revenue Service (IRS). The second requires crypto “brokers” to file a type of 1099 form for certain kinds of crypto transactions. The definition of what a crypto broker is in the original proposal includes miners and software developers. This has caused miners and software developers to protest as they do not know who their users are, making it impossible to report to the IRS. Earlier, tech billionaire Elon Musk also showed his support for the crypto community. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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