Senators propose amendment to infrastructure bill to ease crypto reporting requirements –

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White House’s $ 1.2 Trillion Infrastructure Deal Includes Provisions For Dramatically Tightening Enforcement Of Digital Asset Tax Laws Digital Asset Brokers Would Have Much Higher Reporting Requirements tax, but defining what constitutes a broker has proved problematic

Three U.S. senators have proposed an amendment to the $ 1.2 trillion infrastructure deal currently before Congress, which would seek to revise one part of the bill previously seen as an “imminent threat” to the government. country’s digital asset industry.

In its current form, the bill contains a provision titled “Improved Information Reporting for Brokers and Digital Assets,” as Blockworks previously reported, which creates extensive reporting requirements for brokers. The problem, however, is that the definition of broker is broad enough to cover miners, lightning knots, etc. Coin Center executive director Jerry Brito said in a Twitter post.

Instead, Senators Wyden, Lummus and Toomey proposed amendments to specifically exclude validators, hardware and software manufacturers, and protocol developers from these tax reporting requirements.

Rob Portman, one of the authors of the original bill, denies that the language is problematic and said on Twitter that “digital assets like bitcoin and other cryptocurrencies are a rapidly growing part of our economy.” .

“The legislation does not impose new reporting requirements on software developers, crypto miners, node operators or other non-brokers,” he said on Twitter.

In a previous statement, the Blockchain Association, an industry trade group, said the wording of the bill would put many infrastructure providers in an impossible situation. Bitcoin miners and software developers don’t have enough information about their users, like social security numbers, to properly report tax details.

“It would create this compliance nightmare,” said Kristin Smith, executive director of the association, in a public statement. “Then people would have no choice but to operate illegally, to leave or to shut down.”

“While much remains to be done, this amendment is a responsible step towards the full integration of digital assets into the US financial sector,” Senator Cynthia Lumis said in a public statement. “The space of digital assets and financial technology is incredibly complicated, and we have spent long hours working in the Senate, with industry stakeholders and with the administration to find a way to effectively integrate the digital assets in our tax code without harming technology or stifling innovation. “

This proposed amendment is supported by the Blockchain Association, Coinbase, Coin Center, Ribbit Capital and Square, according to a public statement.

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