Infrastructure bill passes despite cryptocurrency concerns
17:11, 10 August 2021
The US Senate on Tuesday passed a bipartisan $1trn infrastructure spending bill without updated language on cryptocurrency regulations that alarmed the industry.
In a 69-30 vote, Senators reauthorised spending on current federal works projects and pumped a further $550bn into water projects, bridge upgrades, light rail and bus improvements and electric grid and safety measures.
On the Senate floor before the vote, Senate Majority Leader Chuck Schumer (D-New York) said the bill is the answer to “decades of overdue” steps to fix the country’s ailing infrastructure.
Cryptocurrency rules pass despite outcry
A last-minute amendment to limit increased government oversight and reporting regulations for cryptocurrency transactions died on the Senate floor Monday evening after a Republican tried to add defence spending to it.
The cryptocurrency industry argued that the bill’s original language would be detrimental because it could lead widespread imposition of taxation and record-keeping rules, potentially snaring software developers and even retail investors.
Next stop: the House
However, a source told Capital.com that the amended language could be added during debate in the US House of Representatives, which must also approve the legislation.
Under the amendment, cryptocurrency brokers are required to pay taxes on earnings. The proposed legislation defines a broker as someone who conducts transactions on exchanges where customers buy, sell or trade digital assets. Those not taxed under the agreement are software developers, transaction validators and note operators.
Under the current wording of the legislation passed by the Senate, these roles could still be subject to regulation and reporting requirements.
“The bill will pass the House, but what language it will include is anyone’s guess,” a Ways and Means Committee staffer told Capital.com Tuesday before the vote.
When pressed about the cryptocurrency language, the staffer said it's “too soon to read those tea leaves,” given how divided the House is currently.
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