Crypto lobby groups say they’re fighting ‘unworkable’ crypto reporting language in infrastructure bill

Crypto lobby groups say they’re fighting ‘unworkable’ crypto reporting language in infrastructure bill

Law News
August 20, 2021 by J.D. Smith
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By Michael McSweeney. July 29, 2021. (The Block Crypto). Crypto-related language said to be contained in a still-in-flux bipartisan infrastructure spending bill has spurred activity lobby groups in Washington, D.C.  On Thursday, the Blockchain Association derided the proposed spending package as one that “threatens crypto innovation.” As previously reported, one of the bills “pay-fors” is
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By Michael McSweeney. July 29, 2021. (The Block Crypto).

Crypto-related language said to be contained in a still-in-flux bipartisan infrastructure spending bill has spurred activity lobby groups in Washington, D.C. 

On Thursday, the Blockchain Association derided the proposed spending package as one that “threatens crypto innovation.” As previously reported, one of the bills “pay-fors” is tightened tax reporting requirements for crypto companies, which are estimated to raise some $28 billion to be used to fund infrastructure projects over a period of years.

But the controversy centers around which types of crypto companies would be considered “brokers” under the proposed changes, based on drafted language obtained this week by CoinDesk’s Nik De. The prevailing concern is that miners, decentralized finance startups and others not involved in the actual brokerage of digital assets will be hit with overly heightened compliance burdens. According to a fact sheet reviewed by The Block, the language “[updates] the definition of broker to reflect the realities of how digital assets are acquired and traded.”

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