Crypto crackdown to help finance bipartisan infrastructure bill
The deal includes $550 billion in new federal investment
What is the future of crypto regulation?
Sen. Cynthia Lummis, R-Wyo., on the Senate Banking Committee's hearing on cryptocurrency regulation and risks.
The infrastructure deal agreed upon by lawmakers and President Biden on Wednesday includes a crackdown on cryptocurrencies as one way to raise revenue to support spending.
In order to finance more than $500 billion in new spending on infrastructure initiatives, the group said it intends to strengthen tax enforcement when it comes to cryptocurrencies.
As previously reported by FOX Business, IRS Commissioner Charles Rettig requested broader authority from Congress in June to collect information on cryptocurrency transactions.
Rettig said that these transactions, by design, are often "off the radar screens," while noting that the most recent market cap in the crypto world exceeded $2 trillion and more than 8,600 exchanges worldwide.
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An original revenue raising provision that was struck from consideration after losing Republican support involved giving $40 billion to the IRS to beef up its enforcement and tax-collecting initiatives as means to crack down on filers who are not fulfilling their obligations.
In addition to enhanced enforcement on regulating cryptocurrencies, the deal will be financed by redirecting unspent emergency relief funds, "targeted corporate user fees" and other unspecified measures.
The investments include $40 billion for bridges, $52.5 billion for roads, $66 billion for passenger and freight rail and $73 billion for electric grid modernization.
The deal also includes $550 billion in new federal investment.
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In a statement on Wednesday, Biden suggested that there could be more challenges that arise as lawmakers consider the legislation.
"Of course, neither side got everything they wanted in this deal. But that’s what it means to compromise and forge consensus—the heart of democracy," Biden said in a statement. "As the deal goes to the entire Senate, there is still plenty of work ahead to bring this home. There will be disagreements to resolve and more compromise to forge along the way."
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The deal will be taken up by the Senate for consideration.
Senate Majority Chuck Schumer, D-N.Y., said he intended to call a procedural vote on Wednesday night to move forward on the infrastructure bill.
FOX Business’ Hillary Vaughn contributed to this report.