In 2021, the US House of Representatives voted for the Bipartisan Infrastructure Bill for crypto tax provisions. With 218 ayes, the house voted in favor of the bill containing cryptocurrency tax reporting requirements. And with US President Joe Biden’s signature, it became a law. 

This move by the US government has shaken the industry, which was earlier deemed as a crypto-friendly nation. The consequences – it made that market turn red and continues to stay bearish even in 2022. It is still being seen as an unfavorable move for the crypto industry’s growth, which is fairly new to the world.
<h3>Key Highlights of the Bipartisan Infrastructure Bill</h3>
<ul>
 	<li style="font-weight: 400">Crypto brokers must report information about their crypto transactions to the Internal Revenue Services (IRS)</li>
 	<li style="font-weight: 400">Must comply with KYC norms for all transactions above USD 10,000</li>
 	<li style="font-weight: 400">Digital assets are defined as any digital representation of a given value of which the records are maintained cryptographically on a distributed ledger or any similar technology specified by the senator</li>
</ul>
<h3>Any business engaged in the following must report to IRS:</h3>
<ul>
 	<li style="font-weight: 400">Validating distributed ledger transactions</li>
 	<li style="font-weight: 400">Selling hardware or software whose sole function is to permit people to control their private keys</li>
 	<li style="font-weight: 400">Developing digital assets or services and their corresponding protocols used by a person that may not be a customer of the service or asset developer</li>
</ul>
<h2>What US House of Representatives State?</h2>
Under the <a href="https://burgess.house.gov/blog/?postid=403265" target="_blank" rel="nofollow noopener">Bipartisan Bill</a>, the provisions have been made to study blockchain technology and digital tokens (or cryptocurrency). Also termed the “Consumer Safety Technology Act,” the bill is centered around the protection of consumers. The bill also calls for the Consumer Product Safety Commission to the deployment of AI programs to aid consumer safety inspection, identify product hazards, and track harmful trends. 
<h3>The Consumer Safety Technology Act includes two parts:</h3>
<ul>
 	<li style="font-weight: 400">Digital Taxonomy Act</li>
 	<li style="font-weight: 400">Blockchain Innovation Act</li>
</ul>
Both these acts mandate the FTC to report unfair and deceptive acts or practices relating to digital token transactions. The House stated that the bill should only worry “unscrupulous” companies or individuals. The House also added that it is only to prevent ill activities like tax evasion and crypto-based ransomware attacks. 

Despite having multiple ‘positive’ provisions, the bill does not offer clarity on significant terminologies or statements. It is also the reason that companies and individuals have not been fully able to accept the bill for an upward market trend.
<h2>Bipartisan Crypto Bill Followed by Bearish Market</h2>
After the assembly passed the <a href="https://www.cryptoknowmics.com/news/wyoming-senator-cynthia-lummis-provides-insight-into-bipartisan-bitcoin-bill/">bill</a>, the cryptocurrency market saw a huge dip overnight. When the bill was passed last year, the prices of Bitcoin and Ethereum plunged below USD 59,000 and USD 4,200 respectively after a moderate bull run. Bitcoin currently struggles at USD 38,640 and Ethereum at USD 2,820 on CoinMarketCap at the time of writing.

After the assembly, the US Treasury Secretary called Bitcoin an ‘extremely inefficient’ digital asset, making it clear for the industry to not look forward to crypto industry-friendly rules. Treasury Secretary added, “It is a highly speculative asset. I think people should be aware of how volatile these assets are, and I do worry about their potential losses.”

The Treasury has still not defined certain words in the bill like a broker, which caused an upheaval in the industry.

Experts say that the assets are susceptible to high volatility resulting from any government regulation or celebrity endorsements as it is fairly new.
<h2>What Should Investors Do?</h2>
To avoid losses from market volatility, the industry experts always ask their investors to HODL for the long term.

If you, as an investor, wish to stand on the right side of the saga, here’s what you should do:
<ul>
 	<li style="font-weight: 400">Keep track of your crypto transactions (original payment in fiat paid to transact in/ for crypto)</li>
 	<li style="font-weight: 400">Find a tax professional with the knowledge of cryptocurrency industry</li>
 	<li style="font-weight: 400">Be transparent with regards to your holdings or transactions</li>
</ul>
After the Bipartisan Infrastructure Bill was passed, Maddox rightly said, “Crypto investors are in for a big surprise. IRS will track all the information and there’s no avoiding crypto tax now.”

The news negatively affected the crypto market, which continues to stay bearish in 2022. While waiting for better clarification and modification in the bill for better suitability, it is time for us to make better investment decisions that help grow this industry.

What Does The USA's Bipartisan Infrastructure Bill for Mean For Crypto?

In 2021, the US House of Representatives voted for the Bipartisan Infrastructure Bill for crypto tax provisions with 218 ayes.

A crypto enthusiast, all ghillied up to dig deeper into the nuances of Blockchain ecosystem

What Does The USA's Bipartisan Infrastructure Bill for Mean For Crypto?

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