US senators have recently been working on submitting amendments to the cryptocurrency provision in the new ‘Infrastructure bill’. The bill has been widely criticized by traders and investors due to its impracticality and overly broad definitions. The bill is being redrafted by Senators Ron Wyden and Pat Toomey.
Commenting on the amendments, Senator Ron Wyden said:
“There is a sense that there are some opportunities that really provide a window for addressing what this technology is all about. The text of the bill originally didn’t do that and there’s a group of us working together to get it fixed.”
The bipartisan Infrastructure Bill is one of the major economic policies promoted by US president Joe Biden in an effort to renew the aging infrastructure in various parts of the United States.
The cryptocurrency taxation provision was introduced on July 19 which was vehemently opposed by the blockchain associations. The Electronic Frontier Foundation soon joined the opposition and criticized the bill for its attempt to over-regulate the crypto market. Since then, three lawmakers namely Ron Wyden, Pat Toomey, Cynthia Lummis who support cryptocurrencies have been working on the amendments.
Many investors and observers of the industry are seeing the bill as a new threat to the market.
The Taxation committee released a statement estimating taxation generated from cryptocurrency to be around $28 billion, approximately 5% of the bill costs. However, if the bill is amended more critically, it might not generate as much revenue. Senator Cynthia Lummis, a Wyoming Republican said:
“We’ve been trying to make sure the definitions reflect what really goes on in the digital asset world, and we didn’t think the previous amendment did that, and so this effort is to make sure that we’re really focused on the people who have the information.”
The bill has been criticized on various grounds for using impractical language. It would require industry brokers to pay taxes and reveal the personal information of users to increase revenue from the cryptocurrency market. Associations such as the US Blockchain Association have condemned the bill for its unclear definitions that has led to enormous confusion and negative impact on the industry.