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how the government came up with the $10,000 reporting threshold and why Abe believes this number is outdated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

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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/

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Not Reporting Info on Some Transaction Partners Could Soon Be a Felony - Ep.284 51:53 Share

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