Infrastructure Bill: Is Treasury Sec Against the Proposed Amendments?
US Treasury Sec is opposed to the pro-Bitcoin amendments to the infrastructure bill. Here are some insights behind the story.
Washington is currently torn apart by the Infrastructure Bill that is yet to be passed following the Senate session on Thursday. The reason? The lawmakers have a diverse opinion with regards to the clause on cryptocurrencies contained in the deal.
The original infrastructure bill wants individual crypto transactions above $10,000 to be reported to the Internal Revenue Service (IRS) for taxation.
Additionally, crypto brokers, including both digital currency exchanges and miners, are also required under the provisions of the old proposal to file a form of Form 1099 to report transactions bordering on some digital currencies. While both of these proposals are billed to add up to $28 billion to the US economy, they have been met with stiff antagonism by the digital currency ecosystem. Investors and stakeholders believe the requirements will stiffen innovation and keep entities that cannot meet these obligations out of US shores.
Per an earlier Blockchain.News report, three US Senators, including Senate Finance Committee Chairman Ron Wyden (D-Ore.), Sen. Patrick J. Toomey (R-Pa.), and Sen. Cynthia M. Lummis (R-Wyo.), proposed an amendment to the infrastructure bill, which is set to exclude miners and other entities from the reporting requirements.
Where the Problem Lies?
According to a report by the Washington Post, the amendment from three Senators was primarily objected to by Treasury Sec Janet Yellen, a move that appears to have gained backing from the White House. Seeing the stalemate, Sen. Rob Portman (R-Ohio) and Sen. Mark R. Warner (D-Va.) offered a new proposal to help broker a compromise.
Under the latest proposal, more crypto actors will be exempted from the reporting requirements. However, it still falls short of what the Wyden team proposed. The White House appear to back this later deal the more per the Washington Post report.
The impasse is projected to be worked on before the next gathering of the Senators on Saturday. However, if any agreement on how to treat crypto and its active players is not reached, the bipartisan effort to pass the $1 trillion infrastructure bill may have to wait for much longer to be given.
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