The saga of language pertaining to crypto within the proposed US infrastructure bill is coming to a conclusion, and it doesn’t look good for any amendments being passed that will clarify who exactly qualifies as a “broker” and will therefore be obliged to report tax information.
Sensible amendments to the infrastructure bill came from the likes of senators Lummis, Warner, and Cruz. However, the seemingly unstoppable advancement of the bill in its original form has continued to stymy efforts for change.
The bill, as it stands, requires practically all entities involved with crypto to report tax information. For those entities traditionally labelled as brokers, this is something they do as part of their business process. However, the broad way in which the infrastructure bill pertaining to crypto is worded, the term “broker” can apply to miners and software developers, who would find it well-nigh impossible to gather this information.
The juggernaut that is the legislative process of the US senate keeps rolling forward. In spite of the amendments, it seems that the crypto lobbying effort wasn’t enough. Crypto needs to learn from this, and it needs to play the game like Wall Street has been playing it for years.
Banks, pharmaceuticals, and other such institutions have forged links with lawmakers over years because they know they will need friends when the going gets tough.
Bitcoin and cryptocurrencies, on the other hand, aren’t even known about in some of these corridors of power. The crypto sector needs to get itself organised far better, and it needs to amass the money that will help to open doors.
Nevertheless, crypto is learning from this episode. A non-profit digital advocacy group called Fight for the Future was able to coordinate many thousands of calls to senators expressing concerns.
However, the odds were stacked against crypto, given that a unanimous vote on the amendments was needed, and it only took Alabama senator Richard Selby to object, and the game was over.
The Senate should pass the bill later today. Then the bill will be passed to the House of Representatives in September, where crypto lobbyists have another chance to alter the wording of the bill. However, procedures here are every bit as cumbersome as in the Senate, so an extremely arduous fight for crypto remains.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.