The provisions aim to raise $28 billion for infrastructure funding through expanded digital asset taxation, and will impose broad third-party reporting requirements on any crypto firm deemed to comprise a “broker.”
On August 9, general counsel to Compound Finance, Jake Chervinsky, tweeted that the Senate had voted 68 in favor to 29 against ending debate surrounding the provisions, halting discussions until Tuesday’s final vote.
However, Chervinsky emphasized that the Senate could still pass an amendment to the bill by unanimous consent before the final vote.
Senate talks over the controversial cryptocurrency tax provisions to the U.S. infrastructure bill have stalled, with an unamended version of the bill set to be put to a vote on Tuesday.
Sunday night infrastructure bill update:
The Senate has voted 68-29 to end debate. We wanted a vote on the Wyden amendment first, or on a Wyden-Warner compromise, but no luck.
The Senate has to wait until Tuesday to do a final vote. They might still amend the bill before then. https://t.co/VFrmnZqOPQ
— Jake Chervinsky (@jchervinsky) August 9, 2021
The broad language used to define a crypto “broker” in the provision has sent shockwaves across the crypto industry, with analysts inferring that miners, stakers and other network validators, and software developers could be subjected to third-party tax reporting requirements despite failing to possess personal information on their counter-parties.
The crypto sector has thrown support behind an amendment proposed by Senators Pat Toomey, Rob Wyden, and Cynthia Lummis that would limit the definitional scope of crypto “brokers” to exempt miners, validators, and software developers from the provision. However, the majority of lawmakers are backing a competing amendment from Rob Portman, Mark Warner, and Kyrsten Sinema that would only exempt miners, proof-of-stake validators, and wallet providers from the bill.
According to an August 8 Twitter thread from Lummis, both sides are now at an impasse over the 30-hour rule — which allows senators to consider a bill for up to 30 hours before voting on it.
Lummis asserted that while “some senators want to keep focusing on the infrastructure bill for 30 hours to raise awareness about its price tag,” Senate Majority Leader Chuck Schumer “wants to quickly vote in order to focus on other legislation, and won’t allow amendment votes unless that happens.” However, Lummis added:
“If we could vote on amendments I think the digital asset community would be pleased with the outcome.”
If passed by the Senate on Tuesday, the legislation would still need to clear the house before becoming mandated as law, giving further opportunity for the crypto provisions to be revised.
Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.