The White House is weighing in on a last-minute dash to modify a set of cryptocurrency tax provisions in the bipartisan infrastructure bill.
The provisions are designed to help pay for the repair of roads and bridges, among other projects, by clamping down on potential tax evasion through the use of cryptocurrencies.
The original, unmodified bill, as detailed by Compound Labs general council Jake Chervinsky, would expand the definition of “broker” in the tax code to include “any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”
The definition could impact a wide swath of participants in the cryptocurrency sphere. In response, pro-crypto Senator Cynthia Lummis, alongside Senators Ron Wyden (D-Ore) and Pat Toomey (R-Pa), created an amendment they say would specifically clarify that miners of all blockchains as well as software developers and wallet makers will not have to comply with any reporting requirements in the legislation.
Chervinsky, who is also a member of the Blockchain Association, a crypto-focused public policy group, says that the amendment was poised to succeed until a second, surprise amendment emerged from US Senators Rob Portman (R-OH), Mark Warner (D-VA) and Kyrsten Sinema (D-AZ).
In contrast, the second amendment would only exempt proof-of-work miners and crypto wallet creators from the broad reporting requirements of the infrastructure bill. Soon after the surprise amendment was announced, the Biden Administration threw its weight behind it, announcing support.
But Senator Lummis (R-WY) says those changes don’t go nearly far enough.
She’s calling on the crypto community to contact their senators to voice their support for the Wyden-Toomey-Lummis amendment before a potential weekend vote on the bill.
“We NEED you. Please call your Senators. Please tweet. Please email. We are facing major headwinds on the Wyden-Lummis-Toomey amendment. Burying financial innovation in red tape and sending devs plus miners on info collection wild goose chases for info they don’t know is horrible policy.”
The final vote on the infrastructure bill which seeks to raise $28 billion from the cryptocurrency sector is tentatively scheduled for August 7th.
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