The U.S. Senate has blocked an amendment to limit a proposal to increase federal regulation of cryptocurrencies, during the bipartisan infrastructure vote on Monday.
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Crypto Compromise Amendment Blocked
As informed by CNBC, Sens. Pat Toomey, R-Pa., Cynthia Lummis, R-Wyo., Kyrsten Sinema, D-Ariz., and Rob Portman, R-Ohio, presented the crypto compromise amendment that “would have clarified the definition of a ‘broker,’ who under the current provision text, will be required to report crypto gains in a type of 1099 form.”
The definition of a “broker” in the compromise amendment was clarified to exclude validators, like miners and stakers.
Hours earlier, the Treasury Department had said it would not oppose a bipartisan agreement “that limits a proposal in the infrastructure bill to increase federal regulation of cryptocurrencies.”
Treasury Secretary Janet Yellen said on Monday: “I am grateful to Senators Warner, Portman, Sinema, Toomey, and Lummis for working together on this amendment to provide clarity on important provisions in the bipartisan infrastructure deal that will make meaningful progress on tax evasion in the cryptocurrency market.”
“I am also thankful to Chair Wyden for his leadership and engagement on these important issues.”
“Broker” Definition, Too Broad
After the rejection, the Blockchain Association stated its concerns: “As written, the infrastructure bill contains harmful IRS reporting requirements that many in the crypto ecosystem lack the capabilities to comply with.”
“As a result, many crypto players will be forced to move overseas, leaving future jobs and economic growth on the table,” the statement further said.
Crypto advocates state that the bill’s definition of “broker” is not specific, as it is that of “any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”
The crypto compromise amendment –supported by Senators Warner, Sinema, and Portman– was also backed by the White House, and “it would have exempted more cryptocurrency actors from greater regulation than the bill’s original language.”
CNBC reports that the infrastructure bill is on track to pass the Senate on Tuesday.
