- The 6050I clause is not intended to gather information about third parties.
- Toward that goal, Coin Center issued an open letter to the crypto community.
There is a lawsuit against the Treasury Department by a non-profit blockchain advocacy organization Coin Center for allegedly including an unconstitutional addition in their infrastructure bill. Coin Center has stated that it has filed a lawsuit in federal district court against the Treasury Department, contesting the execution of Section 6050I’s reporting requirement under the Infrastructure Investment and Jobs Act.
Compliance With the 6050I Amendment
The lawsuit stated:
“In 2021, President Biden and Congress amended a little-known tax reporting mandate. If the amendment is allowed to go into effect, it will impose a mass surveillance regime on ordinary Americans.”
In order to comply with the 6050I amendment, all inbound transactions for $10,000 or more must have the sender’s name, date of birth, and Social Security number reported. Non-fungible token (NFT) artists and NGOs that accept anonymous contributions are among those impacted by the modification, according to Coin Center, which released a statement about the changes.
The 6050I clause is not intended to gather information about third parties but rather to collect information about the entire public who participates in crypto transactions, Coin Center said as their initial argument. According to the corporation, “the second claim is about our freedom of association,” which prohibits the government from requiring groups to preserve and publish member lists; a Supreme Court case was cited in support of this stance.
Toward that goal, Coin Center issued an open letter to the crypto community, saying:
“We are considering adding additional co-plaintiffs to this suit, so if you might fit this description and are interested, please get in touch.”