Democrats in Congress have proposed new taxes on cryptocurrency transactions as part of their efforts to raise revenue for President Biden’s infrastructure plan.
The proposal would require individuals and businesses to report cryptocurrency transactions worth more than $10,000 to the Internal Revenue Service (IRS), and would also apply the same information reporting requirements that apply to stockbrokers and other financial institutions.
Democrats argue that the new taxes would help to level the playing field between traditional financial transactions and cryptocurrency transactions, which they say are currently under-regulated and allow for tax evasion.
Republicans have criticized the proposal, arguing that it would be difficult to enforce and could stifle innovation in the emerging cryptocurrency industry.
The proposal comes as cryptocurrencies like Bitcoin and Ethereum have gained increasing mainstream acceptance and investment, with several large corporations and financial institutions announcing plans to invest in or accept cryptocurrencies in recent months.
