US President approves law on extended taxation of cryptocurrencies

Joe Biden has signed an infrastructure bill setting reporting requirements for brokers and tightening rules for cryptocurrency companies.

On Monday, US President Joe Biden signed the $ 1 trillion infrastructure bill into law. According to the adopted law, which introduces stricter rules for cryptocurrency companies and expands reporting requirements for brokers, market participants will be required to report in their tax return on transactions with cryptocurrencies in excess of $ 10,000.

Following the signing of the bill, Joe Biden thanked Senators Kirsten Cinema and Rob Portman and Mitch McConnell for their role in getting the bill through the Senate.

“We’ve talked too long about the best economy in the world. Today we are finally getting there. America is moving again and your life will change for the better, ”he said.

Note that earlier a group of senators proposed a compromise amendment that would free software developers, transaction validators and node operators from falling under the definition of a cryptocurrency broker. The proposal did not pass because of Senator Richard Shelby, who objected to a compromise amendment to the bill. However, it was decided that miners and stakers would not fall under the definition of a cryptocurrency broker.

In August, the U.S. Senate voted to pass bipartisan bill HR 3684 without clarifying the definition of a cryptocurrency broker. Before the signing of the law by the US President, Senator Cynthia Lummis tried again to clarify that transaction validators, node operators and software developers would not be considered brokers, but she did not succeed.

The adoption of a law that is unfriendly to cryptocurrencies could well have become a reason for the fall in the price of major cryptocurrencies. Over the course of the day, bitcoin and ether lost more than 7% and are traded about $ 60,800 and $ 4,323, respectively.