Cryptocurrency markets

U.S. Senate sends bipartisan bill to House without amendments to tax cryptocurrencies

U.S. Senate sends bipartisan bill to House without amendments to tax cryptocurrencies
On Tuesday, August 10, the U.S. Senate sent a bipartisan bill to raise $1 trillion to upgrade the nation's infrastructure to the House of Representatives in its original form.
NEWS: The Senate has voted 69-30 to PASS the $1.2 trillion bipartisan infrastructure bill, notching a key agenda win for President Biden, and sending the bill to the House.

19 Republicans joined all 50 Democrats to pass the bill.

- Frank Thorp V (@frankthorp) August 10, 2021
U.S. Senate sends bipartisan bill to House without amendments to tax cryptocurrencies

U.S. Senate sends bipartisan bill to House without amendments to tax cryptocurrencies

The document contains an expanded definition of "broker." So, miners and blockchain node operators, wallet developers, liquidity providers in DeFi-protocols and other non-custodial players may be required to report to the IRS on the activities of their users.

The bill's requirements in this form are not technically feasible, for which the document has been repeatedly criticized by members of the crypto industry, including Elon Musk and Jack Dorsey.
Senators Ron Wyden, Cynthia Lummis and Pat Toomey suggested excluding these types of activities from the document and not extending the rules applicable to brokers to them.

Their colleague Rob Portman agreed, but offered a counter-amendment that would only exclude miners and sellers of hardware or software that allows individuals to control private keys. In the case of his proposal, the status of PoS-validators remained unclear.
Recall that on August 9, Democrats, Republicans and the Treasury Department reached a compromise, but the amendment did not receive unanimous support with 87-year-old Richard Shelby opposing it.

According to journalist Jake Sherman, Shelby, a Republican, admitted that he supported the amendment but blocked it because others had not considered his proposal on defense spending.
Attention crypto world: @SenShelby just told us he's actually for the amendment he blocked yesterday, but blocked it simply because he didn't want them to get an amendment unless he got his defense amendment.
- Jake Sherman (@JakeSherman) August 10, 2021

Now industry lobbyists, having failed miserably in the Senate, are aiming to pass a new amendment in the lower house of the U.S. Congress.

According to Toomey, the new compromise document makes clear who in the digital asset industry will refer to the concept of a "broker." Validators, node operators and software developers would be exempt.

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