The upcoming US budget reconciliation bill could include additional requirements for cryptocurrency companies, following a request from the US Department of the Treasury to extend the scope of new rules designed to protect the market for digital assets.
Roll Call published, that according to an anonymous official in the administration of President Joe Biden, “the administration is looking to add provisions to the budget bill that require US digital asset firms to report their foreign clients.”
The purpose of this possible regulation will be to optimize tax compliance and increase public revenues through the companies in charge of managing the cryptocurrency industry, as was done with the infrastructure bill recently.
According to Roll Call, the official’s account details the procedure to be followed by state institutions, once the US government obtains the information “it would exchange data on the activity related to cryptocurrencies of foreign citizens with respective governments to obtain information on the cryptocurrency operations of US citizens abroad (…). This information would then be used to improve tax compliance.”
Some of the measures recommended by the tax administration improvement firm for the 2022 strategic revenue proposals was to incorporate measures for the regularization and control of the crypto sector in the nation. Another measure would be to try to minimize the gap between what taxpayers pay and what they actually owe the government.
The provisioning measure for the exchange of prospective information is intended to help Democrats with the financing of the budget package, which plans to include massive spending services on health and social welfare.