The United States House of Representatives reportedly offered their go-ahead to the $1.2 trillion bipartisan infrastructure bill, which if enacted by President Joe Biden, would add new laws to crypto tax reporting. 

Specifically, The initial proposal for the infrastructure bill was reportedly pushed out by the Biden administration, with a primary target of enhancing transport network and internet coverage countrywide. 

Nonetheless, the bill reportedly makes stringent reporting requirements mandatory for the crypto hub, where every digital asset transaction with the value over $10,000 to be reported to the IRS. 

The bill reportedly received its initial greenlight from the Senate on Aug. 10, following a 69-30 vote, which was accompanied with a proposal to compromise amendment by a group of six senators — Pat Toomey, Cynthia Lummis, Rob Portman, Mark Warner, Kyrsten Sinema and Ron Wyden.

“This legislation imposes a badly flawed, and in some cases unworkable, cryptocurrency tax reporting mandate that threatens future technological innovation.”

Regardless of the clarity insufficiency can be seen in the bill’s verbatim, the infrastructure bill reportedly aims to classify the crypto community’s software developers, transaction validators and node operators the same way as the brokers of the traditional establishments.

The House of Representatives moved the infrastructure bill to President Biden for approval following winning in a 228-206 vote. 

Legal professionals reportedly suggested changes be made to the infrastructure bill, which classifies failure to report digital asset transactions as a criminal offense.

“It’s bad for all users of digital assets, but it’s especially bad for decentralized finance. The statute would not ban DeFi outright. Instead, it imposes reporting requirements that, given the way DeFi works, would make it impossible to comply.” Abraham Sutherland, a lecturer from University of Virginia School, mentioned worries related to the decision from the US authority to blanket term crypto sub-communities as brokers.