Home » Controversial Crypto Tax Measure will be Passed into Law?

Controversial Crypto Tax Measure will be Passed into Law?

by Hans Lipper
Controversial Crypto Tax Measure will be Passed into Law?

The contentious crypto measures in the U.S. infrastructure bill were the subject of Senate discussions, but those discussions came to a close without any revisions, indicating that the original bill will be voted on Tuesday.

The measures impose extensive third-party reporting obligations on any crypto business that is perceived to be a broker, intending to raise $28 billion for infrastructure investment through greater digital asset taxation.

Jake Chervinsky, general counsel at Compound Labs, tweeted on Monday that the United States Senate had voted 68 to 29 to end the discussion of the measures, putting an end to debate until the vote on Tuesday.

Chervinsky highlighted that, before the final vote, the Senate might still enact a bill amendment by unanimous consent.

With an unamended version of the measure scheduled for a vote on Tuesday, Senate negotiations over the contentious cryptocurrency tax provisions to the U.S. infrastructure bill have stopped.

The broad definition of a crypto broker in the provision has shocked the entire crypto industry. Analysts have concluded that even though they don’t have access to the personal data of their counterparts, miners, stakers, and other network validators, as well as software developers, may be required to file third-party tax reports.

A proposal by senators Pat Toomey, Rob Wyden, and Cynthia Lummis that would restrict the definitional scope of cryptocurrency brokers to exempt miners, validators, and software developers from the requirement has received support from the industry. Rob Portman, Mark Warner, and Kyrsten Sinema’s opposing proposal, which would solely exempt miners, proof-of-stake validators, and wallet providers from the law, is supported by the majority of lawmakers.

In response to the 30-hour rule, which permits senators to review a bill for up to 30 hours before voting on it, both sides have reached a deadlock, according to a Sunday Twitter thread from Lummis.

While some senators want to continue discussing the infrastructure measure for an estimated 30 hours to draw attention to its high price tag, Senate Majority Leader Chuck Schumer, according to Lummis, wants to vote rapidly so that he can focus on other pieces of legislation and won’t permit amendment votes unless that happens.

The bill would still need to pass the House before it could be enforced as law, giving the crypto provisions one more possibility to be changed if it were to be approved by the Senate on Tuesday.

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