The US Senate has approved a $ 1.2 trillion infrastructure bill containing IRS reporting requirements that have been identified as “impracticable.” Senator Ted Cruz warned: “This infrastructure bill contains a section that is designed to eradicate cryptocurrencies. That would be a tragic mistake. “
The US Senate has approved a infrastructure bill
The U.S. Senate passed Infrastructure Bill 69:30.
Many people have expressed concern about the cryptocurrency provisions in this bill. Senator Pat Toomey of Pennsylvania called them “impossible.” Two amendments have been tabled to remedy the situation. On Monday, the senators who proposed the two amendments agreed with the Ministry of Finance and a compromise amendment on cryptocurrency was born.
The Senate voted on the compromise amendment on Monday afternoon. However, this required a unanimous consent agreement, and Alabama Senator Richard Shelby filed an objection after failing to obtain support for his own amendment.
Senator Ted Cruz of Texas to do it said:
“This draft law on infrastructure contains a section that is designed to eradicate cryptocurrencies. That would be a tragic mistake. “
Senator Mike Lee of Utah warned during a Senate meeting on Saturday that if the bill passes, “it will have a chilling effect on innovation in the industry.” Places outside the United States may be the ones to benefit from laws here in the United States if we pass an unproven, untested, unknown strategy. What you will see is an outflow of innovation-related investments in offshore locations around the world. ”
Many people in the crypto-community agree, including Coinbase CEO Brian Armstrong, who wrote: “We will see how the future development of blockchain technology moves to foreign countries such as China, which is currently accepting it.” Tesla CEO Elon Musk also agreed. that “there is no crisis that requires hasty legislation” for cryptocurrencies.
A major problem with the law is the definition of a “broker” who must report to the Internal Revenue Service (IRS). By definition, a broker may include software developers, transaction validators, and node operators that do not collect the information required by the IRS.
The bill has now moved to the House of Representatives, which is returning from a break until September 20.
Despite the failure, cryptocurrency supporters do not give up. After a no-compromise cryptocurrency amendment passed in the Senate, four congressmen began working to reduce the impact of the law.
Representative Tom Emmer wrote: “Me and the co-founders of the blockchain Caucus (a committee for industry and government that studies the implications of blockchain technology) rep. Darren Soto, rep. David Schweikert and Rep. Bill Foster sent a letter to every representative in the House, in which we raised concerns that the draft infrastructure law would have a negative impact on our crypto-industry. “He added:
“The House must consider amendments to this provision, which exclude non-crypto transaction makers, software developers and cryptocurrents.”