US Lawmaker Targets Crypto Investors | New Tax Law Proposed Amid Housing Concerns
Edited By
Maya Patel
New York Representative Nydia Velázquez announced the introduction of the Fair Taxation of Digital Assets in Puerto Rico Act, aiming to eliminate tax benefits for crypto investors. The bill has sparked significant debate over its potential impact on the local economy and the housing market in Puerto Rico.
Legislation Overview
On April 22, 2025, Velázquez proposed changes to Puerto Rico's Internal Revenue Code to impose federal taxes on cryptocurrency income. She argues that the influx of crypto investors has driven up housing costs and displaced locals, while depriving the federal government of tax revenue.
Community Concerns
Comments from community members reveal mixed sentiments about the proposed legislation:
Displacement Fears: Many believe that eliminating the tax benefits could deter legitimate projects from Puerto Rico, instead focusing on the risk of pushing away both residents and investors.
Economic Contributions: A Puerto Rican taxi driver asserted, "While crypto folks live in pricey areas, they genuinely contribute to the local economy. Their spending has boosted revenue across restaurants, groceries, and charities. "
Overall Sentiment: The conversation leans negative, with concerns about potential economic downturns for the island.
Quotes from the Community
"Tax Free times are over 😞 !"
"This feels extreme tbh !"
"Driving up housing costs while not benefiting the economy"
Key Takeaways
🔽 Velázquez’s bill seeks to amend tax exemptions, impacting investor strategies.
⚠️ Mixed community sentiment shows concerns over housing costs and local economic health.
💬 "These people spend a lot and pay sales tax" – Local taxi driver highlights economic impact.
As the bill heads to a Republican-controlled Congress, its fate remains uncertain. Many wonder how this legislation could reshape Puerto Rico’s crypto landscape, given the current reliance on these investments.