Senate Passes $1tn Bill, Crypto Provision Unchanged
- US Senate passes a $1tn legislation, no changes were made to the crypto tax requirement
- As the bill lands in the House of Representatives, the contentious amendment is not yet in force
The Senate Makes No Changes to the Crypto Tax Provision
The US Senate has passed the $1tn infrastructure bill that recently made waves in the crypto community for its controversial crypto provision.
The vote was supported by all 50 Democrats in the Senate, along with 19 Republicans. Because of this, the legislation is now headed to the House of Representatives.
The bill contains a crypto amendment with significant implications for crypto market participants. Once it lands in the House for voting, it will face certain challenges. The bill now hangs on the Democrats’ approval before it is sent to President Biden’s desk for his signature.
Progressive Democrats, however, have said they will not support the sweeping $1tn package, unless it is tied to a broader Democratic budget resolution with a price tag of $3.5tn. The larger spending package is intended to provide funding for social priorities and climate efforts.
In the now-passed $1tn infrastructure package, the contentious crypto provision would require so-called “brokers” in the crypto industry to report their gains made in the crypto realm. The language used to define “brokers” has been labeled by crypto lobbyists as too broad and vague.
Under the definition, the provision would apply to crypto exchanges and a wide range of money service businesses selling digital assets. But it would also apply to crypto miners, validators of proof of stake transactions and software developers, too.
Crypto Lobbyists Call for a Revision of Crypto Tax Reporting Requirement
Non-profits in the industry were quick to mobilize against the proposed measure. The Electronic Frontier Foundation stressed the amendment in the bill would present “a clear and substantial harm” and a “disaster for digital privacy”.
The Congressional Blockchain Caucus, a bipartisan group that promotes blockchain technology and promotes its growth, released a warning yesterday. The four co-chairs of the organization said that “cryptocurrency tax reporting is important, but it must be done correctly.”