Aug 06, 2021 06:00:00

Industry raises concerns about the definition of 'crypto asset trading broker' in the huge infrastructure bill, senators submit amendment

Concerns have been raised about the definition of 'cryptocurrency trading broker' in the bill as the US President Joe Biden proposed the

infrastructure investment plan bill in March 2021 from July. .. In response to that voice, a group of three senators submitted an amendment to 'restrict the definition of the term'broker'and exclude crypto asset miners, software developers, etc.'

Senators propose exclusion of miners, software developers in infrastructure bill's crypto'broker' definition
https://www.theblockcrypto.com/linked/113562/us-senate-crypto-tax-amendment-congress

Cryptocurrency reporting requirement in infrastructure bill sees potential changes
https://www.cyberscoop.com/wyden-toomey-cryptocurrency/

Senators file crypto broker amendment to infrastructure bill after industry backlash
https://www.cnbc.com/2021/08/04/senators-file-crypto-broker-amendment-to-infrastructure-bill-after-industry-backlash.html

The Infrastructure Investment Planning Bill is said to be one of President Biden's top priorities, with the total amount of already approved spending items including new spending over the next five years exceeding $ 1 trillion (about 110 trillion yen) in the United States. It is said that it will be the largest infrastructure investment budget in the past few decades. The bill also includes an item to strengthen tax collection from crypto asset companies as part of strengthening the economic base, and the 'broker' in crypto asset transactions is obliged to report user information to the Internal Revenue Service. It is stipulated to bear.

The bill defines a broker as 'a person who responsibly and regularly engages in digital asset transfer services on behalf of others,' but industry insiders have expressed concern about this definition. .. Since the scope included in the definition of a broker is too wide, depending on the way of thinking, not only crypto asset exchanges but also miners who mine crypto assets and software developers of related services will be included.

'Draft that may require cryptocurrency trading brokers to submit personal information of all users' is submitted in the United States --GIGAZINE

So a group of Democratic Senator Ron Weiden , Republican Senator Pat Toomey and Senator Cynthia Lumis submitted an amendment on August 4 to limit the definition of a broker. The new amendment could exclude cryptocurrency miners, transaction-related nodes and network management validators , software and hardware developers, and transaction protocol developers from the term broker. Guaranteed.

Senator Toomy told CNBC in the news media, 'Our amendment is to clarify the definition of brokers so that minor network verifiers and other service providers who are not financial intermediaries can use the infrastructure investment plan bill. They are no longer subject to the specified reporting requirements. Many of them do not even have the personal identification information needed to submit tax information to the Domestic Revenue Service. '

Regarding this amendment, the blockchain association, a cryptocurrency industry group, Coin Center , a non-profit organization , Coinbase , a cryptocurrency exchange, Square , a mobile payment service that is actively investing in cryptocurrencies, and venture capital firms. Ribbit Capital announced in a joint statement that it would support the amendment. 'Cryptocurrency development and financial innovation have the potential to have a significant impact on the US economy and the public through job creation and increased GDP. It can be catastrophic without public participation or public comment. It should not be subject to law. '

Rainey Lightman, Chief Program Officer at the Electronic Frontier Foundation, also said, 'We believe this amendment will help address some of the key issues in the bill and urge Congress to adopt it. I will do it, 'and expressed support for the amendment.