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Crypto Surprise Rattles Industry in Rare Bipartisan Tax Plan

  • Proposal was late addition to infrastructure agreement
  • Lobbyists, investors question viability, revenue from plan
Rob Portman
Rob PortmanPhotographer: Stefani Reynolds/Bloomberg
Updated on

A Senate proposal to ramp up IRS surveillance over cryptocurrency transactions has the industry and investors questioning the plan’s viability and its promise of generating $28 billion in tax revenue.

Cryptocurrency exchanges, investors and their advisers were caught off guard Wednesday when a bipartisan Senate infrastructure agreement was released that included a large-scale increase in the requirements for crypto brokers and investors to report their transactions to the Internal Revenue Service. The reason for the last-minute inclusion: the proposal would raise a chunk of money to help fund the $550 billion of investment into transportation and utility upgrades.