US Senator Anna Eshoo has recently called for amendments to the $1 Trillion Infrastructure Bill after the US Senate passed the bill without any changes to the cryptocurrency tax provision.
The senator has asked House Speaker Nancy Pelosi to call for a bipartisan amendment supported by the US Treasury Department in a letter on 12th. The open letter expressed concerns over the current crypto tax provision which requires the crypto industry ‘Brokers’ to disclose tax information of users who trade and invest in crypto assets.
The controversy and Eshoo’s proposal
The legislation in the current bill uses a broad definition of brokers. It states a broker as an individual who facilitates a crypto transaction on behalf of another person. Industry experts are concerned that the current definition would encompass miners, validators, and developers of wallets who don’t have access to such requirements.
After facing backlash over the bill, two senators had proposed an amendment that excluded validators and miners from the definition. However, the amendment failed to pass after lone Senator Richard Shelby objected to the bill.
The bill was passed by the US Senate on Tuesday and now awaits approval from the House of Representatives. Asking the House Speaker to amend the definition, US Senator Eshoo wrote:
“When the House takes up the Senate bill, I encourage you to amend the problematic broker definition in Section 80603 of the legislation. A bipartisan group of Senators offered an amendment to this effect that Secretary of Treasury Janet Yellen supported, however, the amendment was not included due to procedural concerns rather than substantive ones.”
$1 Trillion Infrastructure Bill
The Bipartisan US Infrastructure Bill is one of the most advocated policies by President Joe Biden who aims to renew the aging infrastructure in the various parts of the United States. The cryptocurrency tax provision was introduced as a means to generate part of the 1$ trillion budget. If passed, the tax provision would contribute $28 billion to the budget.