A bipartisan group of members of the U.S. House of Representatives introduced the ‘Preserving Innovation in the United States’ Act. It contains a proposal to modify the crypto-related definitions of ‘broker’ in Biden’s infrastructure plan.
The bill would also exempt the 6050I provision of the Tax Code from the infrastructure plan. It would require recipients of digital assets above $10,000 to verify the sender’s personal information.
The authors of the bill were Patrick McHenry, Tim Ryan, Kevin Brady, Ro Khanna, Tom Emmer, Eric Swalwell, Warren Davidson, Anthony Gonzalez and Ted Budd.
According to McHenry, the initiative is aimed at “providing additional clarity” to the bipartisan $1.2 trillion infrastructure investment law for upgrading infrastructure.
Signed by Joe Biden on November 15, the document contains an expanded definition of the term ‘broker’. Depending on the interpretation, miners and node operators in blockchains, wallet developers, liquidity providers in DeFi protocols and other non-custodial players may be required to report to IRS about the activities of their users.
“The infrastructure plan threatens to push innovators and entrepreneurs overseas. It would leave the United States as a passive observer of a rapidly evolving industry. We can fix poorly drafted standards and ensure they are compatible with how the new technology actually works”, — explained McHenry.
The initiative was backed by Coin Center, Blockchain Association, Crypto Council for Innovation, Electronic Frontier Foundation, National Taxpayers Union, Association for Digital Asset Markets, Americans for Tax Reform, Chamber of Digital Commerce and other organisations.
A similar bill will be introduced soon by Senator Cynthia Lummis.
Arriving soon … An opening salvo in support of the coming age of financial freedom and individual sovereignty ?? pic.twitter.com/9kyAp9pJfs
— Senator Cynthia Lummis (@SenLummis) November 17, 2021
Earlier on November 17, U.S. Senator Ted Cruz proposed excluding cryptocurrency brokers from the infrastructure plan.
During the Senate’s consideration of the bill, Cruz was the author of one of many amendments. Unlike his colleagues, who proposed removing from the document non-custodial participants of the industry or at least miners and software sellers, the politician advocated for a full rejection of such formulations.
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