Cryptocurrency rule changes not in US infrastructure bill
By Daniel Tyson
15:13, 8 September 2021
Language favourable to the cryptocurrency industry hasn’t been adopted yet as the $1trn infrastructure bill sits waiting for action by the US House of Representatives ahead of a vote later this month.
The amendments passage prospects “aren’t looking good,” said one Congressional staff person, who asked for anonymity. “The focus is getting (the infrastructure bill) passed. Any discussion on any amendment would push the 27 September vote date back.”
Inaction
According to Congressional records, the House hasn’t taken action on HR. 3684 since 1 July.
House Speaker Nancy Pelosi said late last month the House will pass the infrastructure bill, but said nothing about the cryptocurrency amendment.
“In consultation with the chair of the Transportation and Infrastructure committee, I am committing to pass the bipartisan infrastructure bill by 27 September. I do so with a commitment to rally House Democratic support for its passage,” she said in the statement.
The Congressional source told Capital.com the amendment isn’t being discussed, as no action is taking place on the massive spending bill. With less the three weeks to its passage date, committee chairs are not saying much about the bill, much less the cryptocurrency amendment.
“Perhaps action is coming soon,” the source said.
Industry wants
The cryptocurrency industry favours an amendment clearing up the bill’s ambiguous language on taxation and regulations. The current language states each “broker” must report cryptocurrency gains. However, the industry wants a better definition of “broker,” claiming the word is too broad. They worry the language could possibly target individual traders.
Efforts to address the industry’s concern passed a Senate procedural vote at the 12th hour but failed to be adopted by the full chamber due to timing.
Under the original language, which the House is considering now, the cryptocurrency industry contends this would be detrimental because it could lead to widespread imposition of taxation and record keeping rules, potentially snaring software developers and even retail investors.
Treasure enforcement
The US Treasury Department told CBNC that even if the amendment is adopted, it will not snag non-brokers, including miners and hardware developments.
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