Co-author of U.S. plan for expanded cryptocurrency taxation backs amendments to bill

The U.S. Senator from Ohio Rob Portman backed the proposed amendments by his colleagues that would carve out certain types of cryptocurrency business from the bipartisan infrastructure funding plan.

I agree with Senators Wyden, Toomey, Lummis that we can do more to clarify the intent of the cryptocurrency provision & the Senate should vote on their amendment.

— Rob Portman (@senrobportman) August 5, 2021

“I agree with Senators Wyden, Toomey, and Lummis that we can do more to clarify the intent of the cryptocurrency provision, and the Senate should vote on their amendment,” he wrote.

Portman is one of the authors of the initial provisions relating to the crypto industry. The plan envisions additional funding in the form of taxes on cryptocurrency transactions in the amount of $28 billion.

The bill would classify all facilitators of cryptocurrency transfers as brokers, subjecting them to licensing, reporting and other burdensome requirements.

Sens. Ron Wyden, Cynthia Lummis and Pat Toomey proposed to carve miners, node operators, software developers and other non-custodial participants in the industry out of the plan.

Earlier, Portman, in response to criticism stated that the bill’s provisions do not affect these categories. He also became the co-author of a competing amendment that would exclude from the bill miners on the Proof-of-Work consensus PoW and sellers of equipment or software that enable individuals to control private keys.

The proposal was backed by the Biden administration. However Portman’s colleagues, Mark Warner and Kirsten Sinema, criticized their amendment.

Ron Wyden noted that it provides a “government-sanctioned safe harbour for the most climate-damaging form of crypto tech — PoW.”

The Warner-Portman-Sinema amendment provides a government-sanctioned safe harbor for the most climate-damaging form of crypto tech, called proof-of-work. It would be a mistake for the climate and for innovation to advance this amendment. https://t.co/Ppn5BpoYSX

— Ron Wyden (@RonWyden) August 6, 2021

“Do what you say you’re going to do. Our amendment protects miners as well as hardware and software developers. The other does not. The choice is clear,” wrote Senator Lummis.

Do what you say you’re going to do. Our amendment protects miners as well as hardware and software developers. The other does not. The choice is clear. https://t.co/111GtGz7C0

— Senator Cynthia Lummis (@SenLummis) August 6, 2021

As noted in May 2021, the U.S. Treasury proposed expanding the reporting requirements for brokers dealing with digital currencies.

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