Congressman Re-Attempt Repeal On Brokerage Language In Infrastructure Bill

A small but dedicated alliance of crypto-friendly senators continues against damaging industry language in the Infrastructure bill. Representatives Patrick McHenry and Tim Ryan have signed bipartisan legislation to fix onerous tax reporting requirements on crypto “brokers”. This follows similar efforts from senators Cynthia Lummis and Ron Wyden earlier this week.

The Keep Innovation In America Act

McHenry unveiled his regulatory amendment in a press release on Thursday. The legislation – titled the “Keep Innovation in America Act” – would slash cryptocurrency’s addition to provision 60501. It requires that people receiving over $10 000 in crypto report the sender’s personal information to the International Revenue Service. It also requires that the Treasury department “conduct a study on the effect of expanding the definition of cash.”

In his statement, McHenry emphasizes the importance of welcoming the cryptocurrency industry to the US without burdensome regulation. He claims that the Infrastructure Bill’s current form would push jobs in the market overseas.

“The Keep Innovation in America Act will address these issues and provide additional clarity on the scope of these requirements,” said McHenry. “This would signal to innovators and entrepreneurs that we are committed to growing the next generation of the internet here at home.”

McHenry steps up as Scalise recovers - POLITICO
Patrick McHenry. Source: Politico

This summer, China drove crypto mining from its borders with a unilateral ban. Some have perceived this as an opportunity for the US to gain a competitive edge over their Eastern competitors. It’s already succeeding on this front, now holding the greatest concentration of Bitcoin hash power anywhere in the world. China has even solicited the public for thoughts on these actions, suggesting that they may be reconsidering the decision.

Tim Ryan stated that the space needs regulation, but not at the expense of its growth and innovation for democratizing finance. He echoed the opportunity it provides to trump China by “further enhancing our nation’s role in the development of innovative blockchain technologies.”

Combatting The Infrastructure Bill

On Monday, President Joe Biden signed the $500 billion Investment Act, partly raising money from “cryptocurrency brokers”. However, the vague language within the build caused an uproar amidst the online crypto community. It threatened to impose tax reporting requirements on “brokers”, including node operators to validators to miners.

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Recently, senators Cynthia Lummis and Ron Wyden proposed a last-minute amendment. This act should correct the definition within the bill and nothing more. Also, Pat Toomey intends to fix it. However, he admitted that it would likely require fixing after it passed the Infrastructure bill.

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