Senate passes trillion-dollar infrastructure bill with unamended crypto tax language

Aug 10, 2021 | The Block News | 0 comments


On August 10, the Senate passed H.R. 3684, a landmark infrastructure package months in the making that in its final steps became a flashpoint over cryptocurrency regulation in the United States.

The final vote tally was 69-30, with one abstention from Senator Mike Rounds. The bill has been a priority for the Biden administration and saw broad bipartisan support, despite Democrats asking for more and Republicans asking for less spending. 

The bill’s process, with the Senate version incubating behind closed doors with a bipartisan group, has proved controversial, especially for the crypto community. 

The language that now passed would identify anyone who provides “any service effectuating transfers of digital assets on behalf of another person” as a broker for the purposes of IRS reporting. The crypto industry immediately voiced concerns that beyond the target cryptocurrency exchanges, that language would potentially render such parties as miners, stakers, node operators and software developers responsible for reporting tax information of crypto users. That is not technologically feasible.

Two amendments looking to correct this broad definition emerged over the past week, eventually consolidating into a compromise that included Treasury support. Due to the bill’s truncated process, they didn’t get a traditional vote. Senator Pat Toomey instead presented the consolidated amendment to the Senate for unanimous consent, which required no senator to object.

Senator Richard Shelby of Alabama ultimately sank the amendment out of a desire to see his own $50 billion amendment, to add military spending, enter the bill. 

The bill still needs to pass in the House of Representatives, which is on recess until September. It is not expected to face substantial resistance in the lower chamber. 

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

News Source from

Related Articles

These 3 NFT Projects Collectively Captured Over $10 Billion in Sales

These 3 NFT Projects Collectively Captured Over $10 Billion in Sales

Non-fungible token (NFT) assets have taken the world by storm in 2021 and three current projects in the NFT universe have seen sales stretch into the billions. Statistics show that the NFT marketplace Opensea, the blockchain NFT game Axie Infinity, and the digital...

FTX will begin to move key operations to Bahamas as part of HQ shift

FTX will begin to move key operations to Bahamas as part of HQ shift

FTX is moving some key operations from its long-standing headquarters in Hong Kong to the Bahamas.  FTX Ltd. CEO and founder Sam Bankman-Fried tweeted today that the firm is in the process of moving its headquarters to the Bahamas from Hong Kong. The exchange's...

Pin It on Pinterest

Share This