Senators Seek to Exclude Cryptocurrency Miners From New Tax olicies in the United States
Aug 5, 2021
Supporters of the crypto sector in the United States Senate proposed an amendment to the bipartisan infrastructure bill to clarify that miners and suppliers of crypto services would not be forced to comply with new tax-reporting regulations on crypto brokers.
According to a press release, the amendment would "clarify that 'brokers' means only those people who execute transactions on exchanges where customers buy, sell, and trade digital assets."
That means the IRS won't be able to make miners, stakers, or firms selling hardware or software for holding digital assets report on the activities of their clients or crypto users whose transactions they verify.
It also exempts digital asset creators from monitoring their use if the users aren't their clients.
Democratic Senator Ron Wyden of Oregon and Republican Senators Cynthia Lummis of Wyoming and Pat Toomey of Pennsylvania proposed the amendment.
Wyden said in a statement that while “investors neglecting to pay the tax owed through cryptocurrencies is a genuine problem,” the bill as drafted was overly broad and would have extended to people who were unable to satisfy its demands."
Lummis stated in the press release that “digital assets are here to stay.” “While there is still a lot of work to be done, this amendment represents a prudent step toward fully integrating digital assets into the financial system in the United States.” Analysts at Beacon Policy Advisors stated in a letter to clients that the revisions should not jeopardize legislators' plan to generate $28 billion in taxes over ten years to pay the infrastructure bill.
“The updated scope has raised concerns about a possible decrease in expected revenue from crypto reporting, but we anticipate the $28 billion pay-for will remain unchanged,” they said, adding that the amendment would likely be addressed by Saturday, and the full infrastructure plan will be voted on “by early next week.”