A group of senators Ron Wyden, Cynthia Lummis and Pat Toomey proposed exempting miners, node operators, software developers and other non-custodial participants from the bipartisan plan to fund infrastructure spending.
Wyden-led amendment would clarify cryptocurrency reporting rules https://t.co/ZOIUq4tlUk
— Senator Cynthia Lummis (@SenLummis) August 4, 2021
The plan envisages additional funding through taxes on cryptocurrency transactions $28 billion.
During consideration of the bill disagreements arose over the definition of ‘broker’ included in it.
Pat Toomey considered it too broad and capable of affecting miners, whom he believes should not be regulated by these provisions. He also noted potential difficulties for non-custodial services.
Similar remarks were voiced by advocacy groups promoting and protecting the interests of the cryptocurrency industry.
Wyden and Lummis introduced a amendment that would treat ‘broker’ in the bill as only trading platforms and ‘analogous-type organizations’.
The senators’ proposal also states that there is no need to amend the Securities Act of 1933 and the Securities Exchange Act of 1934.
“Digital assets will not disappear. The amendment is a step on the path to their full integration into the US financial sector. There is still a lot of work ahead.”, — Lummis.
Wyden noted that the proposal would shield American innovation and would tax only those who owe taxes.
Earlier, lawyer Jake Chervinsky criticized the bill. To resolve the clash, he proposed introducing a clear definition of ‘digital asset’ not present in it, which would avoid changing the definition of ‘broker’ in the tax code.
The senators’ initiative was endorsed by Andreessen Horowitz.
We @a16z (@bhorowitz, @pmarca, myself & @cdixon) just sent a letter to @SenSchumer and @LeaderMcConnell in support of the bipartisan Wyden-Lummis-Toomey Amendment to the Infrastructure Bill https://t.co/980hP7kdlT pic.twitter.com/K6zmT22ink
— Kathryn Haun (@katie_haun) August 5, 2021
The Coinbase co-founder and CEO welcomed the lawmakers’ amendments and urged citizens to contact other members of Congress. He also urged exemptions from provisions that would require trading platforms to ensure thorough monitoring of holders’ cryptocurrency activity.
10/ We also need to ask all senators to remove the language requiring sweeping surveillance of crypto holders.
You can use this tool to contact your senators. Thank you! https://t.co/BxkE98QeTp
— Brian Armstrong (@brian_armstrong) August 4, 2021
In ForkLog’s comments, New York-licensed lawyer and head of the international disputes practice at Buzko Legal, Evgeny Krasnov, noted:
“As for transaction monitoring, it is inevitable. It will be adopted either now or later. I don’t think most users will have problems. Rather, those who cannot or do not wish to explain the origin of funds in their accounts on platforms.”.
The specialist also noted that in the United States brokers must obtain licenses from the SEC and FINRA, file reports and comply with a long list of client-related requirements.
In May, the U.S. Treasury proposed expanding the requirements for broker reporting on digital currencies. They would be required to transmit information on the beneficial owners of accounts to the Common Reporting Standard, of which the United States is a member.
Earlier, SEC Chair Gary Gensler urged expanding investor-protection rules for cryptocurrency exchanges.
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