London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Could cryptocurrency derail Joe Biden's flagship infrastructure bill?

Could cryptocurrency derail Joe Biden's flagship infrastructure bill?

Joe Biden's bipartisan infrastructure plan has stalled after a disagreement over how to regulate and tax crypto in the US.

A bid to pass a major infrastructure bill worth nearly $1 trillion (€850 billion) has stalled in the US Senate after a fierce debate erupted over how to tax cryptocurrency.

It was hoped the bill - a rare bipartisan effort and a key plank of US president Joe Biden's legislative agenda - would be passed on Thursday night. But the debate over several amendments to the bill saw its progress through the Senate grind to a halt.

Called the Infrastructure Investment and Jobs Act, the thick bill is the first substantial part of Biden's plans to improve US infrastructure and would inject billions of new spending on roads, bridges, waterworks, broadband, and other projects to virtually every corner of the country.

One of the amendments generating the most attention on Thursday involved cryptocurrency.

A 'chilling effect' on crypto technology


The bill would raise an estimated $28 billion (€23.8 billion) over 10 years by updating IRS reporting requirements for cryptocurrency brokers, just as stockbrokers report their customers' sales to the IRS.

Republican senator Pat Toomey and others are concerned that crypto miners, software developers and others would be subject to the new IRS reporting requirement.

Toomey led efforts to narrow the definition of who must file the reporting forms to the IRS.

"If we were not to adopt this amendment, then we could be doing a lot of damage," Toomey said.

"We could have a very chilling effect on the development of this technology, and that's what I am most concerned about".

A top Republican negotiator, Senator Rob Portman of Ohio, who had written the provision, tweeted that he agreed with the amendment sponsors that more can be done to clarify the intent of the provision and the Senate should vote on their amendment.


But that vote has yet to occur and the White House weighed in late Thursday, suggesting it favoured a different approach from Portman and other senators.

Reducing crypto tax evasion


White House deputy press secretary Andrew Bates said the compromise amendment "would reduce tax evasion in the cryptocurrency market".

He said the administration believes "this provision will strengthen tax compliance in this emerging area of finance and ensure that high-income taxpayers are contributing what they owe under the law".

Treasury Secretary Janet Yellen also spoke to lawmakers on Thursday to lobby them against watering down the proposed cryptocurrency regulation.

The Senate came to a standstill for nearly two hours late into the night as senators privately debated the next steps.

If senators wrap up work on the bipartisan bill, they will next turn to the much more partisan undertaking on the next phase of Biden's agenda: a $3.5 trillion (€2.98 trillion) proposal for what the White House calls human infrastructure - child care support, home health care, education and other expenditures that are Democratic priorities that Republicans have pledged to reject.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×