The cryptocurrency add-on to the $1 trillion bipartisan infrastructure bill has been given an official deal-type blessing that would complement changes intended to appeal as a compromise to both sides, Bloomberg reported on Monday (Aug. 9).
Under the new wording, there are requirements that concern tax-reporting laws about bitcoin and other cryptocurrency transactions. The bill’s provision was expected to bring in some $28 billion, according to multiple media reports.
Crypto enthusiasts expressed concern that the new law being passed could curtail others involved in the industry aside from brokers, such as bitcoin miners and others working in the crypto space.
A bill amendment was introduced by Sen. Ron Wyden (D-Oregon) and Sen. Cynthia Lummis (R-Wyoming), along with Sen. Pat Toomey (R-Pennsylvania). Meanwhile, President Joe Biden’s administration also said it is looking for another amendment. Sen. Rob Portman (R-Ohio), Sen. Kyrsten Sinema (D-Arizona) and Mark Warner (D-Virginia) have all added changes.
The goal of the amendment, Toomey said, was to make it easy to distinguish who was a cryptocurrency broker and make sure it would remain such, per Bloomberg. “We came together to provide greater clarity on the rules for who are the actual brokers of a cryptocurrency,” he noted at a news conference. “We’re not proposing anything sweeping or anything radical.”
The deal is working to set a middle ground for wording the portion of the infrastructure bill that requires cryptocurrency brokers to report transactions to the Internal Revenue Service (IRS).
“In some ways, regardless of how this turns out, it’s been a very positive exercise,” Blockchain Association Executive Director Kristin Smith said in a statement, per Bloomberg. She added that it is likely that federal regulators will “revisit cryptocurrency rules” again in the coming months and years.