Cryptocurrency Business Wins Concessions in Infrastructure Invoice

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A last-minute lobbying push by the cryptocurrency industry to change the language in the bipartisan infrastructure bill passed over the weekend has managed to take back some of the control that participants in the sector are facing from the IRS

The final bill included some changes to address concerns from the cryptocurrency industry, which last week expressed concern about new requirements that would define most participants in the sector as brokers, forcing them to share information with the IRS for over a decade of collecting $ 28 billion.

After receiving a backlash from cryptocurrency lobbyists, lawmakers revised this section of the bill to “clarify” rather than expand the definition of a broker.

The legislation also removed language expressly targeting “any decentralized exchange or peer-to-peer marketplace”. It replaced this with a broader definition that characterizes broker as someone who is “responsible for the regular provision of services that effect the transfer of digital assets on behalf of another person”.

The cryptocurrency industry insisted that stricter tax enforcement shouldn’t apply to miners or digital money creators or the “node operators” who keep the software behind the transactions running.

Lobbyists continued to urge Senators for more clarity to ensure these parts of the emerging sector were exempted from the law. They believe they have assurances from top lawmakers like Ohio Republican Senator Rob Portman about the intent of the law, but they are seeking similar assurances from the Treasury Department, which has broad discretion to enforce the law when it gets to President Biden passed and signed.