Two Senators Propose Exemptions to Crypto Tax Reporting Required By US Infrastructure Bill

Two Senators Propose Exemptions to Crypto Tax Reporting Required By US Infrastructure Bill

U.S. Senators Ron Wyden (D-Ore.) and Kyrsten Sinema (D-Ariz.) on Saturday introduced a new amendment related to a crypto tax reporting provision of the landmark infrastructure bill.

The amendment would exclude cryptocurrency miners who are involved in validating transactions on distributed ledgers and companies that are selling private key hardware or software wallets.

The current version of the crypto reporting provision in the bill would broaden the definition of a “broker” to any entity within the cryptocurrency industry that facilitates the transfer of digital currencies for another person. Opponents of the provision have said that it would force miners, hardware and software developers to track transactions of individuals who are not their direct customers.

The amendment would be a compromise between an amendment proposed by Wyden, Pat Toomey (R-Pa.) and Cynthia Lummis (R-Wyo.) and an amendment proposed by Senators Rob Portman (R-Ohio), Sinema, and Mark Warner (D-Va.).

Jerry Brito, executive director of crypto advocacy think tank Coin Center, noted on Twitter that the amendment didn’t include protocol developers.

Early Saturday, the Senate invoked cloture on a Sinema and Sen. Rob Portman (R-Ohio) substitute amendment by a tally of 67-27. This is the first procedural step toward passing the bill. By invoking cloture, the Senate is limiting debate on the measure to 30 hours, thus allowing for a final vote by the chamber later Saturday or on Sunday.

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