Senators Wyden and Lummis to introduce crypto amendment to Biden's infrastructure bill
November 15, 2021, 1:59PM EST
1 min read
Senate Finance Committee Chairman Ron Wyden (OR-D) and Senator Cynthia Lummis (WY-R) have plans to introduce a new bill today that would reverse some of the cryptocurrency provisions in the recently-passed bipartisan infrastructure package.
The Block obtained a copy of the yet-to-be introduced legislation today. Wyden and Lummis' draft says it seeks to "revise the rules of construction applicable to information reporting requirements imposed on brokers with respect to digital assets, and for other purposes." In short, it would exclude individuals developing blockchain technology from having to report information about their users to government agencies.
The text of the infrastructure bill was hotly-debated among crypto advocates since the bill proposed extensive crypto taxation measures in the hopes of funding portions of the US government's $1 trillion plan. The language of the bill left some worried it viewed blockchain network participants under the "broker" definition, which would subject them to Internal Revenue Service (IRS) reporting requirements.
Wyden and Lummis' proposed amendment comes as President Joe Biden is slated to sign the infrastructure package into law this afternoon.
A rush to pass the package did not allow for a usual voting process on amendments. Now, Wyden and Lummis are introducing a bill that would amend the final bill, targeting the murky broker definition in an effort to protect blockchain network participants.
Bloomberg first reported the existence of the draft, and Wyden told the outlet that the amendment would protect American innovation while ensuring that those who trade crypto would still pay the taxes they owe. As the bill has yet to be introduced, it remains unclear when it could face further discussion or a vote.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.