Crypto-related clause in US infrastructure bill updated, but so far “not good enough,” it says

The massive $ 550 billion U.S. infrastructure bill appears to have bipartisan support for passage in the Senate, but a small provision last week on cryptocurrency taxation reports has left some crypto lawyers fearing the worst. The situation looked a little better over the weekend.

Congress wants to increase the total amount of the bill by $ 28 billion by expanding the broker’s definition for tax purposes. On Friday, the text of the bill stated that “every individual is responsible (for a fee) and regularly provides digital asset transfer services and services.”& quot;

Lawyers in the industry feared the language was too broad and could affect cryptocurrency miners, transaction validators who help support the blockchain, those who verify participation and even decentralized funding (Defi) users such as liquidators or owners of management tokens.

If true, these individuals would be required to comply with IRS reporting requirements, including filing 1099 forms, thereby increasing the scope of financial surveillance of cryptocurrency users. With the addition of this provision, the Senate aims to encourage tax payments on crypto transactions to monetize the bill.

On Sunday, in the final draft of the bill to extend the definition of a broker for tax purposes, “any person (for a fee) is responsible for the regular provision of a service that turns digital assets in another person’s favor.”

Jerry Brito, chief executive of crypto industry think tank Coin Center, tweeted about the changes and said there was still room for improvement. “We did not receive the language requested in the final text of the bill,” he wrote. “It’s better than where it all started, but it’s still not good enough to explicitly exclude miners and people like them.”

1 / we did not receive the language requested in the final text of the bill. It’s better than where it all started, but still not good enough to explicitly exclude miners.

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