Industry Braces for New Tax Rules; Square’s Bitcoin Paradox

The bipartisan infrastructure bill, a full draft of which was released publicly on Sunday, continues to put the cryptocurrency industry on edge, as trade groups argue that the bill’s language is too broad and includes too many businesses as “brokers” that would have to report crypto transactions to tax regulators.

While trade groups want the limitations focused on exchanges like Coinbase, they are fearful that other businesses, such as bitcoin miners, will face them, too. The extensive reporting requirements could force these crypto companies to hire new personnel to gather the information needed to fulfill them, a cost that could be passed on to consumers, said Guinevere Moore, an attorney and managing member of Moore Tax Law Group.