A bipartisan amendment that limits the scope of 'crypto asset trading brokers' in the huge infrastructure bill is rejected

Since July 2021, the United States has been deliberating on the adoption of an infrastructure investment plan bill that will invest a total of $ 1 trillion (about 110 trillion yen) in infrastructure development and expansion. Amid concerns about the definition of 'cryptocurrency trading broker' in such an infrastructure bill, a bipartisan senator group submitted an amendment to limit the scope of 'brokers', but the unanimous parliament. It was rejected without a match.

Bitcoin Lobby Loses: Senate Rejects Revised Crypto Tax Provisions in Infrastructure Bill --Decrypt

Late effort to revamp cryptocurrency rules in infrastructure deal fails in Senate --The Washington Post

Senate Fails to Amend Crypto Tax Provision in Infrastructure Bill --Blockworks

Crypto compromise amendment blocked in Senate infrastructure vote

The infrastructure bill, which is the largest investment in the United States in decades, includes an item to strengthen tax collection from crypto asset-related companies as part of strengthening the economic base. This item stipulates that the 'broker' in crypto asset transactions is obliged to report the user's information to the Internal Revenue Service.

However, the crypto asset industry has criticized the definition of 'broker' in crypto asset transactions as ambiguous. So on August 4, a bipartisan group of Democratic Senator Ron Weiden , Republican Senator Pat Toomey and Senator Cynthia Lumis submitted an amendment to limit the definition of brokers. 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.

Concerns from the industry about the definition of 'cryptocurrency transaction broker' in the huge infrastructure bill, senators submit amendment-GIGAZINE

Meanwhile, apart from Senator Weiden's group, Democratic Senator Mark Warner, Senator Kyrsten Cinema , and Republican Senator Rob Portman have also submitted amendments to the definition of brokers. The proposed amendment was criticized by the crypto asset industry for having a problem with the definition of crypto asset miners.

Discussions on the two amendments were difficult, but a statement was issued that the two amendments were concluded on August 9, just before the infrastructure bill passed, and the two parties decided on a new amendment. The new amendment states that as a compromise between the two groups, tax reporting requirements will only apply to 'enterprises that regularly trade digital assets in exchange for consideration.'

Toomey, Warner, Lummis, Sinema, Portman Announce Agreement on Digital Asset Reporting Requirements in Infrastructure Bill | United States Committee on Banking, Housing, and Urban Affairs

Treasury Secretary Janet Yellen also issued a statement, saying that the US Treasury also cooperated in drafting the new amendment. 'We thank Senator Warner, Senator Portman, Senator Cinema, Senator Toomy, and Senator Lumis, and we thank Senator Weiden for his leadership and involvement in these important issues.' ..

Statement from Secretary of the Treasury Janet L. Yellen on the Cryptocurrency Compromise | US Department of the Treasury

The deliberation of the infrastructure bill had already ended on the evening of the 8th, so unanimous consent of the Senate was required for the amendment to be adopted. In the deliberations on the 9th, Republican Senator Richard Shelby tried to piggyback on the amendment to crypto assets and add an amendment to increase military spending by $ 50 billion, but he is not affiliated with it. Senator Bernie Sanders expressed opposition. When the amendment related to cryptocurrency assets was voted without including the amendment related to military spending, the amendment was rejected because Senator Shelby expressed opposition.

Senator Shelby is 87 years old at the time of writing the article, and will retire at the end of his current term.

The infrastructure bill is expected to pass the Senate and be sent to the House of Representatives on the 10th of local time, without including any amendments to the definition of brokers. 'The good news is that we won't give up,' tweeted Jerry Brito, executive secretary of Coin Center , a non-profit organization on cryptocurrency policy, after deliberation in the Senate. He said he would aim to include a new amendment again after the infrastructure bill was sent to the House of Representatives.

From the beginning of the discussion, the Biden administration said that it had no intention of applying the rules to minors and developers who do not have tax information, and it is unknown how the passage of the infrastructure bill will affect the crypto asset industry. is.

in Note, Posted by log1h_ik