Cryptheory – Just Crypto

Cryptocurrencies are our life! Get an Overview of Market News

The Rundown on the Senate’s Infrastructure Bill

2 min read

The Rundown on the Senate’s Infrastructure Bill

Cryptocurrency has recently become embroiled in the US Senate’s $1 trillion infrastructure bill, which aims to repair weathered roads and bridges, fund broadband initiatives, and more.

A last-minute amendment to the crypto-tax provision was tacked onto the bill last week, earning some criticism from the crypto community as they see the mandate as anti-innovative and ambiguous

Here is how it went down.

  • The definition of “broker” suddenly changed. The sudden changes would mean two things: US crypto exchanges would now fall under the category of “brokers”, and the reporting requirements for traditional brokers will expand beyond just 1099s.
  • Although Coinbase CEO Brian Armstrong acknowledged that tax reporting is important, he pointed out the flaws of the provision. Namely, he said that the mandate would senselessly impose tax on anyone in the crypto ecosystem. Armstrong also said that the reporting requirements force exchanges to surveil its user’s transactions, making it more intrusive than traditional finance.
  • The Senate offices began receiving tons of calls and emails from crypto users. A letter protesting the sudden changes received over 120 signatories, including those from non-profit organizations and individual companies. Political groups like the Electronic Frontier Foundation and the Americans for Tax Reform criticized the last-minute legislation.
  • Senators Cynthia Lummis, Ron Wyden, and Pat Toomey proposed an amendment to refine the definition of “broker.” This one exempts protocol developers, validators, and software and hardware wallet makers from the original tax reporting requirements.
  • Another amendment by Senators Rob Portman, Mark Warner and Kyrsten Sinema joins the scene and competes with the initial amendment. This time, it favors proof-of-work protocols over others. Despite its unpopularity with the crypto community, the White House endorsed it.
  • Five of the six senators proposed a last-minute compromise amendment brokered with the Treasury Department. However, it has failed to receive enough consent required by procedural rules.

The post The Rundown on the Senate’s Infrastructure Bill appeared first on SuperCryptoNews.


All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
BlackRock (IBIT), the Grayscale Bitcoin Trust (GBTC), Fidelity (FBTC), Ark Invest/21Shares (ARKB), Bitwise (BITB), Franklin (EZBC), Invesco/Galaxy (BTCO), VanEck (HODL), Valkyrie (BRRR), WisdomTree (BTCW), Hashdex (DEFI)

Leave a Reply

Your email address will not be published. Required fields are marked *