Senators Introduce Bill to Amend New Crypto Regulations
The amendments were put forward the same day the infrastructure bill was signed into law.
- President Biden has signed the $1.2 trillion infrastructure bill, which contained new reporting requirements for digital assets, into law.
- On the same day, a bipartisan team of senators has introduced a bill to amend those requirements, which have been viewed as overly restrictive.
- The senators stressed the importance of encouraging American innovation in the digital assets space.
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A bipartisan team of senators has introduced amendments to the crypto reporting requirements included in the $1.2 trillion infrastructure bill signed into law by President Biden earlier today. The amendments would relax certain aspects of these requirements.
In the wake of President Joe Biden signing the $1.2 trillion infrastructure bill into law this afternoon in what he called “an enormous win for the American people,” a bipartisan team of U.S. senators has introduced a bill that would narrow some of the infrastructure bill’s cryptocurrency tax reporting rules, according to Bloomberg. Many cryptocurrency investors have expressed concerns that the crypto tax provision of the infrastructure legislation was overly broad and could be especially problematic for DeFi, as well as for miners and software developers.
Senator Cynthia Lummis, (R-Wyoming), who owns bitcoin herself, and Senator Ron Wyden (D-Oregon), Chairman of the Senate Finance Committee, together wrote the new bill that would make these revisions retroactively to the infrastructure bill passed today. Senator Lummis warned:
“Digital assets are here to stay in our financial system and the decisions we make now will have impacts far into the future. We need to be fostering innovation, not stifling it.”
Some details of the bill include the clarification of tax reporting requirements, which were included in the original bill in order to help fund the cost. Under the amendments, these requirements would no longer apply to “individuals developing blockchain technology and wallets,” according to Senator Wyden. He emphasized the importance of protecting American innovation but also the need to enforce tax collection.
Disclosure: At the time of writing, the author of this feature held BTC, ETH, and several other cryptocurrencies.