Senators clarified a provision in the Infrastructure Investment and Jobs Act that would have severely tightened cryptocurrency regulations — a move that had drawn the …
Senators clarified a provision in the Infrastructure Investment and Jobs Act that would have severely tightened cryptocurrency regulations — a move that had drawn the ire of lawmakers, entrepreneurs, and others concerned about the statute’s effects on the emerging sector. As The Daily Wire reported last week, a provision of the 2,700-page, $1.2 trillion package would have amended the Internal Revenue Code by introducing a “return requirement for certain transfers of digital assets not otherwise subject to reporting.” The clause defined “digital asset” as “any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology.” The new amendment — drafted on Monday by Sen. Pat Toomey (R-PA) and Sen. Cynthia Loomis (R-WY), and co-sponsored by Sen. Mark Warner (D-VA), and Sen. Rob Portman (R-OH) — would change the definition of “broker” so that software developers and transaction validators would not be subject to the new requirements. A statement from the lawmakers explains: There’s broad agreement that digital asset exchanges behaving as brokers should be required to report transactions just like other kinds of brokers already do. There is also concern that tax evasion and non-compliance are becoming significant issues surrounding cryptocurrencies and digital assets.
