Senator Toomey Calls Text of Current Crypto Tax Proposal ‘Unworkable’

Sen. Pat Toomey (R-Pa.) on Monday called the bipartisan infrastructure bill’s proposed crypto tax reporting clauses “unworkable” and pledged to amend them.

The text’s definition of a broker is too broad, according to Toomey, and affects non-financial services parties, like bitcoin miners, that he said should be exempt. Plus, non-custodial services would struggle to properly file identification forms with the Internal Revenue Service, he said.

“Congress should not rush forward with this hastily-designed tax reporting regime for cryptocurrency, especially without a full understanding of the consequences,” he said in a press statement.

Toomey promised to amend the bill. He is now looking for a Democrat senator as co-sponsor, according to a source familiar with the matter.

The statement by the Senate Banking Committee’s top Republican member highlights the rocky road ahead for the $1 trillion infrastructure bill. The Biden administration signature push calls for $550 million in new congressional spending, some $28 billion of which would come from a crypto tax.