US Senate Rejects Amendment Excluding Bitcoin From Tax Bill

In the afternoon of yesterday, August 9, it was reported that the United States Senate has refused to include the cryptocurrency amendment in the Tax Infrastructure Bill.

This August 10 at 11 am, the Senate will hold the final vote on the bill, according to the entity. If approved, it will be declared as current law this year.

Senators from the United States reached an agreement regarding the new tax law and the terms of it that conflict with the operation of Bitcoin and cryptocurrencies.

After intense discussions throughout the weekend, and a final hearing on the morning of August 9, 2021, a group of senators of different political tendencies assumed the commitment to pass an amendment to the new Infrastructure Bill (Law of Fiscal Infrastructure). The amendment is also supported by the Treasury Department, senators report.

Senator Patrick Toomey and Senator Cynthia Lummis offered a press conference this morning to limit the definition of broker that handled the bill “Anyone who regularly transfer digital assets on behalf of another person.”

In another section of the bill, which has not yet been made completely public, it is specified that developers, validators and wallets are outside this definition, according to Jerry Brito, director of the CoinCenter organization.

“I am pleased to announce that we have reached an agreement between Democrats, Republicans, members of the Senate and the Treasury Department on an issue that has puzzled us for a while,” said Toomey at the beginning of the press conference.

Toomey appreciated the work of all senators and pointed out a key agreement to understand this law and its purpose. “There is a fairly broad agreement that centralized exchanges acting as brokers must report their transactions just like other brokers do today,” he said.

Under this definition, miners would be excluded since they are not in charge of the transmission of value, but rather of the validation of transactions. The law should apply, at the discretion of the senators in question, only to exchanges or exchange houses.

In fact, as reported by CryptoNews last week, leading industry analysts agree with Toomey that the cryptocurrency ecosystem is not entirely opposed to paying taxes.

However, he explained that the law goes far beyond what is due , confusing the key terms to reconcile tax regulatory aspects with the operation of cryptocurrencies and their markets.

Notably, this agreement was also joined by Senators Rob Portman, Mark Warner and Kyrsten Sinema, who last week also introduced an amendment in this regard, excluding only miners, developers and wallets based on networks from the definition of broker. in the Proof of Work (PoW), but not the Proof of Stake (PoS). This amendment was even supported by the White House, but now the senators who signed it join the proposal led by Toomey and Lummis.

 

We will be happy to hear your thoughts

Leave a reply

The Rich Baby
Logo
Reset Password