Beautiful Virgin Islands

Thursday, Jul 03, 2025

Could cryptocurrency derail Joe Biden's flagship infrastructure bill?

Could cryptocurrency derail Joe Biden's flagship infrastructure bill?

Joe Biden's bipartisan infrastructure plan has stalled after a disagreement over how to regulate and tax crypto in the US.

A bid to pass a major infrastructure bill worth nearly $1 trillion (€850 billion) has stalled in the US Senate after a fierce debate erupted over how to tax cryptocurrency.

It was hoped the bill - a rare bipartisan effort and a key plank of US president Joe Biden's legislative agenda - would be passed on Thursday night. But the debate over several amendments to the bill saw its progress through the Senate grind to a halt.

Called the Infrastructure Investment and Jobs Act, the thick bill is the first substantial part of Biden's plans to improve US infrastructure and would inject billions of new spending on roads, bridges, waterworks, broadband, and other projects to virtually every corner of the country.

One of the amendments generating the most attention on Thursday involved cryptocurrency.

A 'chilling effect' on crypto technology


The bill would raise an estimated $28 billion (€23.8 billion) over 10 years by updating IRS reporting requirements for cryptocurrency brokers, just as stockbrokers report their customers' sales to the IRS.

Republican senator Pat Toomey and others are concerned that crypto miners, software developers and others would be subject to the new IRS reporting requirement.

Toomey led efforts to narrow the definition of who must file the reporting forms to the IRS.

"If we were not to adopt this amendment, then we could be doing a lot of damage," Toomey said.

"We could have a very chilling effect on the development of this technology, and that's what I am most concerned about".

A top Republican negotiator, Senator Rob Portman of Ohio, who had written the provision, tweeted that he agreed with the amendment sponsors that more can be done to clarify the intent of the provision and the Senate should vote on their amendment.


But that vote has yet to occur and the White House weighed in late Thursday, suggesting it favoured a different approach from Portman and other senators.

Reducing crypto tax evasion


White House deputy press secretary Andrew Bates said the compromise amendment "would reduce tax evasion in the cryptocurrency market".

He said the administration believes "this provision will strengthen tax compliance in this emerging area of finance and ensure that high-income taxpayers are contributing what they owe under the law".

Treasury Secretary Janet Yellen also spoke to lawmakers on Thursday to lobby them against watering down the proposed cryptocurrency regulation.

The Senate came to a standstill for nearly two hours late into the night as senators privately debated the next steps.

If senators wrap up work on the bipartisan bill, they will next turn to the much more partisan undertaking on the next phase of Biden's agenda: a $3.5 trillion (€2.98 trillion) proposal for what the White House calls human infrastructure - child care support, home health care, education and other expenditures that are Democratic priorities that Republicans have pledged to reject.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
×