August 27, 2021
The controversial crypto rules are here to stay in the infrastructure bill after being voted to proceed without changes by the House, The Verge informs.
In July, the Senate decided to include crypto tax measures in the infrastructure bill. A month has passed and the crypto community still regards the new crypto taxation rules as controversial because of the problematic language used. They opposed the imprecise language used in the bill. One major example of this is the term “broker”. The term is used broadly and it could be interpreted to refer not only to brokers but also to include crypto miners, developers, and node validators. Critics of the provision and crypto advocates argue that the broad language will bring a stop to the crypto business in the United States even though many consider cryptocurrencies the new form of payment to be used in the future.
After weeks of working hard to change the language in the infrastructure bill to help exempt miners, developers, and validators, the crypto community failed in the attempt and the bill will proceed without amending the problematic terms. On August 24, House Speaker Nancy Pelosi and a group of Democrats agreed to approve the $3.5 trillion budget plan, but the deal prohibits any new changes unless the House decides to allow them.
Neeraj Agrawal, Coin Center communications director, says: “We’re disappointed but not surprised, it was always a long shot. That said, we have opportunities over the coming months to get this fixed in legislation.” Cryptocurrency advocates will not stop until their request is approved. The Treasury Department assured them that, once the bill passes, it will make sure to exempt firms that do not operate as brokers.
As the House moves forward with the infrastructure bill, there are concerns that cryptocurrency transactions and cryptocurrency gambling will move underground. Stricter cryptocurrency regulations will “push illicit use and criminal actors deeper into anonymizing methods and corners of the internet that would make it more difficult for law enforcement,” according to the US Secret Service Office of Investigations Assistant Director, Jeremy Sheridan.