Five US senators have been working with the Treasury Department and have introduced a crypto compromise amendment to the $ 1.2 trillion infrastructure bill. “We have worked with the Treasury Department to clarify the underlying text and ensure that those who are not acting as brokers are not subject to the reporting requirements of the bill.”
Senators and Treasury Department Agree to Compromise Amendment for Crypto Reporting Requirements
The U.S. Senate Committee on Banking, Housing and Urban Affairs announced Monday that Senators Pat Toomey (R-Pa,) Mark Warner (D-Va.) Cynthia Lummis (R-Wyo.), Kyrsten Sinema (D-Az.), And Rob Portman (R-Oh.) Have reached “a agreement on digital asset reporting requirements ”in the infrastructure bill.
The details of the announcement:
We have worked with the Treasury Department to clarify the underlying text and ensure that those who are not acting as brokers are not subject to the bill’s reporting requirements.
At the press conference held on Monday on the subject, Senator Toomey explained that this compromise amendment It is not a perfect solution, but it is “much better than the underlying text” currently in the bill.
Emphasizing that “cryptographic software developers, crypto transaction validators, node operators, and other non-intermediaries” are excluded, Toomey said:
Our solution makes it clear that a broker refers only to those people who transact on exchanges where consumers buy, sell and trade digital assets.
Coin Center CEO Jerry Brito agrees that the compromise amendment “reinforces the expanded definition of ‘broker’ enough that it is difficult to argue that it covers protocol developers who only write and publish code.” , adding that it also “has exemptions for hardware / software wallet manufacturers and validators.”
Last week, two amendments to the encryption provisions were made in the infrastructure bill. One was sponsored by Senators Ron Wyden, Toomey, and Lummis. Wyden is the chairman of the US Senate Finance Committee He has not signed the new compromise amendment, but “agrees that this is a big step in the right direction,” Lummis said.
While the crypto community supported the Toomey-Wyden-Lummis amendment, the White House decided to back a competitive amendment sponsored by Senators Warner, Portman, and Sinema. However, his amendment originally excluded only proof-of-work miners, causing serious concerns that the US government was picking winners and losers in innovation. There were also reports that Treasury Secretary Janet Yellen had been lobbying against the Toomey-Wyden-Lummis plan.
Wyoming’s pro-bitcoin senator opined Monday:
We’ve been working all weekend to reach a compromise to address the digital asset corridor issue in the Bipartisan Infrastructure Framework. While not perfect, it protects innovation and does not pick winners and losers.
“Today we are going to promote a unanimous consent agreement in the Senate, which we hope will be successful,” he added.
What do you think of this new crypto amendment? Let us know in the comment section.
Image credits: Shutterstock, Pixabay, Wiki Commons