Not Reporting Info on Some Transaction Partners Could Soon Be a Felony - Ep.284

Remember the $1 trillion infrastructure bill, which caused considerable backlash from the crypto community due to the language regarding “brokers?” Abe Sutherland, an adjunct professor at University of Virginia School of Law, believes another provision tucked inside the bill could end up being a far more significant issue for anyone transacting in digital assets. Show highlights:
how Abe fell down the crypto rabbit hole what provision 6050I is and how it could affect anyone transacting with digital assets how 6050I works and when it would apply why violating 6050I would be a felony how 6050I discourages digital asset transactions how 6050I would apply to different transaction types, like peer-to-peer trades, NFT sales, and smart contract escrow accounts what information recipients of digital assets must verify from the sender how the government came up with the $10,000 reporting threshold and why Abe believes this number is outdated why Abe thinks proposing 6050I within the infrastructure bill is inappropriate what reasons the government has to want to put such stringent reporting requirements on digital asset transactions  how 6050I fits under the financial laws of the Bank Secrecy Act why Abe believes the amendment should be struck from the infrastructure bill what Abe thinks of the constitutionality of 6050I how Abe views 6050I as less about generating tax revenue and more about tracking people’s digital asset transactions what action steps he says the crypto community can take to fix the bill


Thank you to our sponsors!
Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021
Nodle: http://nodle.io/unchained

Episode links

Abe Sutherland
https://twitter.com/abesutherland
Medium Post: https://medium.com/@laurashin/why-not-reporting-info-on-your-crypto-trading-partner-could-become-a-felony-c6399998f113

Information on 6050I
Abe’s research report  https://www.proofofstakealliance.org/wp-content/uploads/2021/10/Research-Report-on-Tax-Code-6050I-and-Digital-Assets-printable.pdf Tweet thread from Abe https://twitter.com/abesutherland/status/1438881314871156736 https://twitter.com/abesutherland/status/1443082205383696384 6050I article Abe wrote for Bitcoin Magazine https://bitcoinmagazine.com/business/the-proposal-to-regulate-digital-asset-transactions-should-be-struck  Abe’s appearance on What Bitcoin Did to discuss 6050I https://www.whatbitcoindid.com/podcast/hidden-danger-in-the-infrastructure-bill Twitter spaces with Congressman Warren Davidson, Peter McCormack, and others regarding the infrastructure bill https://www.youtube.com/watch?v=lCq6BVLzF44 Miscellaneous 6050I links https://www.marketwatch.com/story/the-crypto-industry-could-take-tax-fight-all-the-way-to-the-supreme-court-11632509009 https://www.breitbart.com/politics/2021/09/29/infrastructure-bills-crypto-surveillance-criticized-unconstitutional/ https://fortune.com/2021/09/21/crypto-transactions-report-to-government/ https://www.coindesk.com/policy/2021/09/17/crypto-lobbying-group-warns-of-another-tax-provision-in-senate-infrastructure-bill https://www.coincenter.org/an-unworkable-and-arguably-unconstitutional-tax-change-tucked-away-in-the-infrastructure-bill/ https://decrypt.co/81236/overlooked-part-senate-infrastructure-bill-renews-worries-crypto-lobby https://nickanthony.substack.com/p/last-minute-cryptocurrency-taxation https://www.cato.org/blog/infrastructure-bill-hangs-balance-so-does-crypto https://ambcrypto.com/what-is-the-u-s-infra-bill-crypto-amendment-really-all-about
Unchained coverage of the infrastructure bill
How Congress Might Pass Laws Bad for Proof-of-Stake and DeFi https://unchainedpodcast.com/how-congress-might-pass-laws-bad-for-proof-of-stake-and-defi/
Coverage on the original amendment regarding “brokers:”
https://decrypt.co/77838/rival-amendment-senate-infrastructure-bill-threatens-proof-stake  https://decrypt.co/77859/crypto-industry-mobilizes-to-stop-controversial-tax-plan  https://decrypt.co/77841/biden-crypto-infrastructure-bill-amendments  https://www.eff.org/deeplinks/2021/08/16-civil-society-organizations-call-congress-fix-cryptocurrency-provision    https://decrypt.co/77681/senators-move-exempt-bitcoin-miners-tax-provision-infrastructure-bill  https://www.forbes.com/sites/jonathanponciano/2021/08/04/senators-propose-change-to-new-crypto-rules-for-tax-reporting-heres-whos-affected/  https://twitter.com/BlockchainAssn/status/1422976741715361792  https://twitter.com/jerrybrito/status/1422002228102107142  https://www.theblockcrypto.com/linked/113196/wyden-crypto-language-in-infrastructure-bill-fails-to-understand-how-the-technology-works  https://www.coindesk.com/new-infrastructure-bill-looks-to-raise-30b-through-crypto-taxes  https://twitter.com/jchervinsky/status/1421150344051048451  https://twitter.com/NeerajKA/status/1421242689148932105  https://www.cnn.com/2021/08/01/politics/bipartisan-infrastructure-bill-collins-manchin-senate-cnntv/index.html  https://www.coindesk.com/gop-lawmaker-janet-yellens-treasury-likely-behind-surprise-crypto-bill