{"id":197614,"date":"2021-08-26T07:11:20","date_gmt":"2021-08-26T06:11:20","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=197614"},"modified":"2021-08-26T23:25:37","modified_gmt":"2021-08-26T22:25:37","slug":"crypto-sees-potential-trouble-as-us-blocks-changes-to-infra-bill","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/crypto-sees-potential-trouble-as-us-blocks-changes-to-infra-bill\/","title":{"rendered":"Crypto sees potential trouble as US blocks changes to infra bill"},"content":{"rendered":"

The House Rules Committee has blocked infrastructure bill changes and voted 220-212 to lock in the procedure, with a <\/span>resolution<\/span><\/a> approved on Tuesday afternoon.<\/span><\/p>\n

The Committee that determines the rules of debate for bills lined up for a vote has agreed that the US House of Representatives will decide on the <\/span>controversial<\/span><\/a> $1 trillion infrastructure bill without any amendments to the crypto tax provision by September 27.<\/span><\/p>\n

Why amendments?<\/strong><\/h2>\n

Crypto advocates have urged for changes to the cryptocurrency tax reporting provision since late July when the last-minute proposal was added to the \u201chistoric\u201d $1 trillion infrastructure bill.<\/span><\/p>\n

According to them, in a bid to raise an additional $28 billion through expanded tax obligations for the sector, the added provision <\/span>threatens<\/span><\/a> the industry\u2019s viability in the US.<\/span><\/p>\n

The unrefined language contained in the bill could <\/span>jeopardize<\/span><\/a> technological innovation in the country as it implies strict third-party reporting requirements to the Internal Revenue Service (IRS).<\/span><\/p>\n

According to crypto industry lobbyists, for some participants, including network validators and software developers, these requirements are, as currently formulated, impossible to comply with.\u00a0<\/span><\/p>\n

No reassurance<\/strong>\u00a0<\/span><\/h2>\n

According to an anonymous Treasury official, the fear and criticism surrounding the controversial crypto tax provision are unwarranted.<\/span><\/p>\n

A Treasury official told <\/span>CNBC<\/span><\/i><\/a> that the US Treasury Department will not target non-brokers even if the provision isn't amended and that the reporting requirements would be extended only to those able to comply.<\/span><\/p>\n

This brought no reassurance to Coin Center executive director Jerry Brito, who addressed the issue on Twitter.<\/span><\/p>\n

\u201cPlease don\u2019t accept the narrative that folks in crypto are overreacting about this provision,\u201d he said while adding that \u201cthe expanded definition of “broker” is only one of the concerns.\u201d\u00a0<\/span><\/p>\n

According to Brito, \u201cother issues have not gotten as much attention because they weren't the subject of the bipartisan Senate amendment effort.\u201d<\/span><\/p>\n

\n

6\/ Second, the expanded definition of "broker" is only one of the concerns we have with the Portman crypto tax provision. We have other concerns that have not gotten as much attention because they weren't the subject of the bipartisan Senate amendment effort.<\/p>\n

— Jerry Brito (@jerrybrito) August 24, 2021<\/a><\/p><\/blockquote>\n