President Biden has officially signed into law the controversial Infrastructure bill which has a provision in it pertaining to the crypto industry.
The bill, which contains more than $1 trillion in spending for everything from roads and bridges, to $5 billion for electric school buses, also includes a piece that redefines the meaning of “broker” in the digital asset space.
Under the new bill, a vast range of entities working in the industry could be classified as brokers, and thus required to issue a 1099-like form disclosing who their customers are to the government. They would also be required to report every transaction over $10,000.
Though the crypto provision doesn’t take effect until 2024, those in the space have lamented the new legislation, including US officials.
Senators Ron Wyden (D-OR) and Cynthia Lummis (R-WY) have introduced a new bill that attempts to tweak Biden’s infrastructure package to bring in a more crypto-friendly definition for “broker.”
In an announcement yesterday, the senators said that their new bill would amend the definition to exclude “miners and stakers, as well as wallet providers and developers, and would ensure that only those digital asset intermediaries that actually have access to material customer information are required to report to the IRS.”
Ostensibly, Wyden and Lummis’ bill aims for crypto exchanges to be the only major entity affected by the provision.
“With the infrastructure bill on the verge of becoming law, it’s critically important to protect innovation in the digital asset space,” Senator Wyden said.
“Our bill makes clear that the new reporting requirements do not apply to individuals developing blockchain technology and wallets. This will protect American innovation while at the same time ensuring those who buy and sell cryptocurrency pay the taxes they already owe.”
Lummis said that passing the bill and embracing the crypto space was imperative to “maintain America’s position as the global financial leader.”