Apparently, the failure of the Senate to clearly define the notion of a broker within the crypto interpretation in the infrastructure bill might prompt the US House of Representatives to proceed on the clarification front.
The HR 3684 infrastructure bill that will allocate approximately $ 1 trillion to building infrastructure and providing jobs in the meantime passed with a 69-30 vote in the United States Senate. This bill also aims to put a tighter leash on the crypto market by mandating brokers (yet to be clearly defined) to information reporting on transactions exceeding $10,000 to the Internal Revenue Service – IRS. This regulation however will not compel brokers to report the value of their assets or pay a tax on them.
At first, the plan was to clarify the definition of the broker within the bill in order to determine which members of the crypto markets are subjected to mandatory information reporting. Then, Senators Cynthia Lummis, Rob Portman, Ron Wyden, Mark Warner, Kyrsten Sinema, and Pat Toomey recommended an amendment where only the mediators will be subjected to the broker category and excluded from the definition of the broker would be node operators, software developers, and transaction validators.
Related: Former CFTC Chair Says Crypto is Not Part of SEC Jurisdiction
Since the lack of amendment did not allow for the language to be further illuminated, only Senator Toomey and Lummis stood by their original recommendation, different from Senators Wyden, Portman, Sinema, and Warner that voted in favor of passing the bill. Senator Toomey condemned the decision to pass the bill by deeming it as a flawed threat to future technological innovation, among other unfavorable remarks as drivers of his decision to vote nay.
The infrastructure package we voted on today is too expensive, too expansive, and too unpaid for. I could not support it. My full statement: pic.twitter.com/IQPguSdkry
— Pat Toomey (US Sen. ret.) (@SenToomey) August 10, 2021
The exclusion of the amendment was decided on Monday, with the objection of Alabama Senator Richard Shelby. Nonetheless, there is yet an opportunity to rectify the unclear language by the involvement of the United States House of Representatives prior to the infrastructure bill falling into the hands of President Joe Biden himself.
Since the House will not review the bill most probably until the end of 2021, Tom Emmer along with other bipartisan Blockchain Caucus co-chairs Bill Foster, David Schweikert, and Darren Soto implored the House representatives to amend the bill for the protection of civil liberties and exclude blockchain intermediaries from the broker definition.
I, along with bipartisan Blockchain Caucus co-chairs @RepDarrenSoto, @RepDavid, and @RepBillFoster sent a letter to every single Representative in the House raising concerns about the Senate infrastructure bill being paid for by our crypto industry. pic.twitter.com/MzsEmBbosr
— Tom Emmer (@GOPMajorityWhip) August 9, 2021
Also read: SEC Expected to Approve the Latest Bitcoin Strategy ETF Filed by VanEck