Two Senators Propose Exemptions to Crypto Tax Reporting Required By US Infrastructure Bill

Nasdaq

U.S. Senators Mark Warner (D-Va.) and Kyrsten Sinema (D-Ariz.) on Saturday updated their amendment modifying a crypto tax reporting provision in the Senate’s landmark infrastructure bill.

The original amendment, introduced late Thursday, would exclude cryptocurrency miners who are involved in validating transactions on distributed ledgers and companies that are selling private key hardware or software wallets. 

How To Get Free Crypto  

An initial updated version would broaden the exemption beyond just proof-of-work validators, but a second revision appears to only exempt proof-of-work and proof-of-stake validators.

Related: Senate’s Infrastructure Bill: What to Expect on Saturday

The Senate is expected to vote on both this amendment, as well as a directly competing amendment written by Senators Ron Wyden (D-Ore.), Cynthia Lummis (R-Wyo.) and Pat Toomey (R-Pa.). This amendment would exempt a broader swath of non-broker entities from the provision.

The current version of the crypto reporting provision in the bill would broaden the definition of a “broker” to any entity within the cryptocurrency industry that facilitates the transfer of digital currencies for another person. Opponents of the provision have said that it would force miners, hardware and software developers to track transactions of individuals who are not their direct customers.

Jerry Brito, executive director of crypto advocacy think tank Coin Center, noted on Twitter that the amendment didn’t include protocol developers.

Coinbase Banner  

Early Saturday, the Senate invoked cloture by a tally of 67-27. This is the first procedural step toward passing the bill. By invoking cloture, the Senate is limiting debate on the measure to 30 hours, thus allowing for a final vote by the chamber later Saturday or on Sunday.

Related: Tesla’s Musk Urges Lawmakers Weighing Infrastructure Bill’s Tax Provision Not to Pick Crypto ‘Winners or Losers’

CORRECTION (August 8, 19:05 UTC): An earlier version of this story said U.S. Senators Ron Wyden (D-Ore.) and Kyrsten Sinema (D-Ariz.) had introduced the amendment. The amendment was introduced by Mark Warner (D-Va.) and Sinema. Adds updates throughout.

Related Stories

  • The US Senate Goes to War Over Crypto Taxation
  • Janet Yellen Has Been Lobbying Against Wyden-Lummis-Toomey Crypto Amendment: Report

Go to Source
Author: CoinDesk


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.