Senate talks regarding the controversial crypto provisions to the U.S. infrastructure bill have ended without amendment, suggesting the unique bill will be voted on come Tuesday.
The provisions purpose to raise $28 billion for infrastructure funding through expanded digital asset taxation, and will impose broad third-party reporting requirements on any crypto agency deemed to comprise a “broker.”
On August 9, general counsel to Compound Finance, Jake Chervinsky, tweeted that the Senate had voted 68 in favor to 29 against ending debate surrounding the provisions, halting discussions until Tuesday’s final vote.
However, Chervinsky emphasized that the Senate may still pass a modification to the bill by unanimous consent before the final vote.
Senate talks over the controversial cryptocurrency tax provisions to the U.S. infrastructure bill have stalled, with an unamended version of the bill set to be put to a vote on Tuesday.
The broad language used to define a crypto “broker” in the provision has sent shockwaves throughout the crypto industry, with analysts inferring that miners, stakers, and other community validators, and software developers could be subjected to third-party tax reporting requirements despite failing to possess personal information on their counter-parties.
The crypto sector has thrown support behind an amendment proposed by Senators Pat Toomey, Rob Wyden, and Cynthia Lummis that would limit the definitional scope of crypto “brokers” to exempt miners, validators, and software developers from the provision. However, the majority of lawmakers are backing a competing amendment from Rob Portman, Mark Warner, and Kyrsten Sinema that would only exempt miners, proof-of-stake validators, and wallet providers from the bill.
In line with an August 8 Twitter thread from Lummis, both sides are now at an impasse over the 30-hour rule — which allows senators to consider a bill for as much as 30 hours before voting on it.
Lummis asserted that while “some senators want to keep focusing on the infrastructure bill for 30 hours to raise awareness about its price tag,” Senate Majority Leader Chuck Schumer “wants to quickly vote in order to focus on other laws, and gain enables modification votes until that occurs.” However, Lummis added:
“If we could vote on amendments I think the digital asset community would be pleased with the outcome.”
If passed by the Senate on Tuesday, the laws would still clear the house before becoming mandated as law, giving further opportunity for the crypto provisions to be revised.
