FX24 Cryptocurrency news 08 August 2021 Hits: 1108

Monday could be Judgment Day for the cryptocurrency market

FX24 Cryptocurrency news 08 August 2021 Hits: 1108

According to Reuters, the U.S. Senate held an interim vote on a bill that would allocate $1.2 trillion to fund infrastructure projects. Part of these funds will be obtained through an increase in tax collections, in particular from the cryptocurrency market, congressmen plan to collect an additional $28 billion.

The planned legislative changes will lead to the fact that brokers, exchanges, miners, hot wallet operators and custodians will have to report on customer transactions on Form 1099.

Monday could be Judgment Day for the cryptocurrency market

Previously, only exchange customers whose transactions exceeded $10,000 paid taxes. In the new wording, any transaction closed with capital gains will be taxable. A number of senators proposed limiting the taxation to exchanges and brokers, removing a broad interpretation of the legal entities subject to cryptocurrency taxes, but faced a tough White House stance on the issue.

According to the Washington Post, U.S. Treasury Secretary Janet Yellen personally came to Congress to defend the original version of the law. Advocates of cryptocurrencies only managed to convey the senators' position that wallet operators cannot identify the owner, as well as the fact that their transactions are profitable or unprofitable.

Then the White House insisted that the shares of PoS-mainers should be taxed on Form 1099, exempting PoW-cryptocurrencies from the fees. It's likely that only fully verified investors will now be able to become validators in the U.S.

The controversial law has passed its first preliminary approval and could be passed Sunday night. Either way, the White House has gained support from both parties.
Congressmen are on recess next week and will not delay the vote. The latest version of the law, if passed, could bring down the cryptocurrency market as early as this Monday.