USA’s Infrastructure Bill And Tax Implications On ‘Brokers’
Joe Biden announced and signed an infrastructure bill with new tax laws for a category known as the brokers. However, the experts and proponents from the crypto world were highly unhappy with this because of the ambiguity that existed with the category of brokers.
It included miners too, which to people seemed unfair since mining and staking are operations that are quite different from brokers.
This is because brokers and miners don’t really handle any funds but are still expected to pay taxes according to the laws.
This was the reason for the Bitcoin and Ethereum prices dropping low once again. This is because the problem runs deeper than that meets the eye.
When the law includes exchange platforms such as Coinbase within the brokers’ category, the platform has to report all its activities to the government. Now, this is a fundamental issue for crypto enthusiasts and experts due to the simple fact that it is against the core philosophy.
One of the most significant ideologies behind cryptocurrencies and blockchain technology was independence from any kind of authority, including the government. This way, only the people have complete control over their money, and there is no intervention from other third parties.
With this law going into effect, it will give the government control over the crypto assets and activities that take place on the blockchain, thus stripping the technology off of its core principle.
This is why there have been protests by numerous proponents and prominent actors of the crypto world. Furthermore, they have even suggested alternate ways in which the tax implications would mean for various actors in the crypto world.
Due to these reasons, the prices of Bitcoin and other crypto-assets dropped drastically. But if you’re a crypto enthusiast, there’s still some good news for you.
