Infrastructure Bill, the amendment protecting crypto fails
Infrastructure Bill, the amendment protecting crypto fails
Regulation

Infrastructure Bill, the amendment protecting crypto fails

By Eleonora Spagnolo - 10 Aug 2021

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The battle over the Infrastructure Bill and the amendments designed to save (or kill) the cryptocurrency sector continues in the US Senate. According to the latest updates, the Lummis-Toomey-Portman amendment has been shelved. 

The text of the amendment envisaged not giving tax obligations to entities such as miners, stakers, validators and so on, who do not have the potential and characteristics to report to the IRS, the tax collection agency. Specifically, these entities are required to provide data about the users making the transactions, data that miners, as well as devs, simply do not know. In practice, the law is designed for a traditional tax system, putting crypto players on an equal footing with banks. 

At the moment, however, the amendment calling for this provision to be changed has not been adopted. 

But it doesn’t end there. Senator Cynthia Lummis has made it clear that the battle continues: 

The amendment was defeated by Senator Richard Shelby, who blew the chance of getting the unanimous consent needed to pass the proposal.

Infrastructure Bill, the battle of the crypto sector moves to the House

What happens next? It is likely that the Senate will vote on the Infrastructure Bill today, then the battle will move to the House of Representatives. It will be sometime in September.

And even when the bill is finally passed, the debate will focus on the IRS, which will have to write the rules to enforce the law. 

However, Bloomberg notes, the crypto industry has found unexpected allies in the Senate, and were it not for arcane rules and time constraints, the Lummis-Toomey-Portman amendment might well have passed. 

That is why in the House, in September, there is a possibility that the law could be modified and made less stringent for the crypto sector. 

The House has already received a letter signed by Senators Tom Emmer, Darren Soto, David Schweikert and Bill Foster. 

The text reads:

“Cryptocurrency tax reporting is important but it must be done correctly. When the Infrastructure Investment and Jobs Act comes to the House, we must prioritize amending this language to clearly exempt non custodial blockchain intermediaries and ensure that civil liberties are protected”.

The battle continues, and the market doesn’t seem to care. Today Bitcoin is up 5%, ETH is doing even better. The industry seems unconcerned despite the uncertainties surrounding its future in the US.  

Eleonora Spagnolo

Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.

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