Cryptocurrency in the infrastructure bill: The industry won last-minute concessions.
Cryptocurrency lobbyists had expressed alarm at the prospect of far-reaching scrutiny from the I.R.S.
A last-minute lobbying push by the cryptocurrency industry to change language in the bipartisan infrastructure bill that was finalized over the weekend succeeded in scaling back some of the scrutiny that participants in the sector will face from the I.R.S.
The final legislative text included some changes to alleviate concerns of the cryptocurrency industry, which expressed alarm last week about new requirements that would define most of the participants in the sector as brokers and force them to turn over information to the I.R.S. The provision was projected to raise $28 billion over a decade.
After receiving pushback from cryptocurrency lobbyists, lawmakers revised that section of the bill to “clarify” the definition of a broker rather than expand upon it.
The legislation also removed language that explicitly targeted “any decentralized exchange or peer-to-peer marketplace.” It replaced that with a broader definition that characterizes brokers as anyone “responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”
The cryptocurrency industry has been adamant that the tougher tax enforcement should not apply to miners, or creators, of digital money, or the “node operators” that keep the software behind transactions moving.
Lobbyists were continuing to press senators for greater clarity to ensure that those parts of the nascent sector would be excluded from the law. They believe that they have assurances from top lawmakers, such as Senator Rob Portman, Republican of Ohio, about the intent of the law, but they are still seeking similar assurances from the Treasury Department, which will have broad discretion to implement the law if it is passed and signed by President Biden.
Alan Rappeport is an economic policy reporter, based in Washington. He covers the Treasury Department and writes about taxes, trade and fiscal matters. He previously worked for The Financial Times and The Economist. More about Alan Rappeport
Inside the World of Cryptocurrencies
Two years after the cryptocurrency market crashed, there are signs that crypto is booming again in the Philippines, long a center of crypto activity.
Pushed by a nonprofit with ties to the Trump administration, Arkansas became the first state to shield noisy cryptocurrency operators from unhappy neighbors. A furious backlash has some lawmakers considering a statewide ban.
Ben Armstrong, better known as BitBoy, was once the most popular cryptocurrency YouTuber in the world. Then his empire collapsed.
Federal judges are weighing whether digital currencies should be subject to the same rules as stocks and bonds. The outcome could shape crypto’s future in the United States.
New investment funds that hold Bitcoin have begun trading, and it might be tempting to invest in them. Should you?
Since the FTX cryptocurrency exchange collapsed in 2023, a whole new market has emerged that hopes to profit from claims in the company’s bankruptcy.
Advertisement