U.S. House passes $1.2 trillion infrastructure plan

The U.S. House of Representatives voted to pass the $1.2 trillion infrastructure plan without crypto-industry–friendly amendments. CNN reports.

The votes were split 228 to 206. The measure was sent to President Joe Biden for signature.

Coin Center’s executive director, Jerry Brito, explained that the crypto provisions will take effect on January 1, 2024. He said the Senate would work on a second major spending bill, which could include an amendment.

2/ It’s important to note that the crypto provisions will not take effect until Jan. 1, 2024, so there is time to roll back this law before it affects anyone. So what can we do?

— Jerry Brito (@jerrybrito) November 6, 2021

Brito noted that the fight is not over, and the community has ‘a few ways’ to fix the situation. He pointed to the broad interpretation of the definition of ‘broker’ and noted that the Treasury will decide who the requirements apply to.

4/ Second, we’ve been working with several members of the House to introduce stand-alone bills to amend the new crypto tax reporting provisions. We would have over two years to get these passed.

— Jerry Brito (@jerrybrito) November 6, 2021

“We will participate in this regulatory process,” emphasized the executive director of Coin Center.

5/ Third, although the \”broker\” definition is now very broad that doesn\’t mean it automatically covers miners, node operators, developers, etc. Treasury will now interpret its authority and decide who it will apply requirements to. We will engage in that regulatory process.

— Jerry Brito (@jerrybrito) November 6, 2021

On August 10, the Senate voted for a bipartisan plan, which provides for $1 trillion in funding for roads, bridges, airports, schools and other projects. The document envisions raising additional financing through taxes on cryptocurrency transactions totaling $28 billion.

In the crypto community they criticised the bill for its broad definition of \”broker\”, which would cover participants in the crypto industry. It would obligate miners, node operators, wallet developers, liquidity providers in DeFi protocols and other non-custodial players to report user transactions to the tax authorities.

Sens. Ron Wyden, Cynthia Loomis and Pat Toomey proposed to exempt crypto-industry participants from the bipartisan plan. Their colleague Rob Portman put forward a counterproposal, exempting from tax reporting only miners and sellers of hardware or software, leaving unclear the status of PoS validators.

On August 9, Democrats, Republicans and the Treasury reached a compromise, but the corresponding amendment did not receive unanimous support — opposed by the 87-year-old Richard Shelby.

CNBC, citing a Finance Ministry official, reported that the agency does not intend to broadly interpret the definition of ‘broker’ to industry participants.

Earlier in the community they raised concerns about yet another amendment to the infrastructure plan, which would require recipients of digital assets valued at more than $10,000 to verify the sender’s personal information.

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