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Debate over competing amendments to regulate cryptocurrency creates a new hurdle for the Senate to complete work on a $ 1.2 trillion bipartisan infrastructure bill.
An amendment proposed by two Republicans and the Democratic chairman of the Senate finance committee sparked controversy and provoked opposition from the White House.
The amendment, which would exclude cryptocurrency reporting requirements outlined in the Infrastructure Bill, is sponsored by the Chairman of the Senate Finance Committee. Ron Wyden
Ronald (Ron) Lee WydenSchumer decides to close debate on T-infrastructure bill The job to protect journalists is not done. (D-Ore.) And Sens. Cynthia lummis
Cynthia Marie Lummis Schumer decides to close debate on T-infrastructure bill Former Wyoming Senator Mike Enzi dies in bicycle accident Former Senator Mike Enzi hospitalized after serious bicycle accident MORE (R-Wyo.) And Pat Toomey
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The White House supports another amendment proposed Thursday by Sens. Rob portman
Robert (Rob) Jones PortmanSchumer decides to close debate on T-infrastructure bill In praising Susan Collins’ persistent bipartisanship, the CBO says the bipartisan infrastructure bill would add $ 6 billion to the deficit on 10 years PLUS (R-Ohio), Mark Warner
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Kyrsten SinemaSchumer decides to close debate on T-infrastructure bill In praising Susan Collins’ persistent bipartisanship, CBO says bipartisan infrastructure bill would add $ 6 billion to deficit over 10 years MORE (D-Arizona). It has tighter exemptions on proposed industry regulations.
“The Warner-Portman-Sinema Amendment provides a government-approved haven for the most climate-damaging form of crypto technology called proof of work. It would be a mistake for the climate and for innovation to move this amendment forward, ”Wyden tweeted.
The infrastructure bill sets out reporting requirements for the cryptocurrency that would help fund the roughly $ 1,000 billion bill. The requirements could raise $ 28 billion over 10 years, according to the Joint Committee on Taxation.
But cryptocurrency companies and industry groups have raised concerns that the broad definition of “broker” in the bill would also place requirements on so-called cryptocurrency miners.
The industry’s retreat has led to competing amendments that differ on how they would clarify the definition of “broker” in the Infrastructure Bill, providing for different exemptions for people to whom the reporting requirements apply. would apply.
“I think we’re at a stalemate,” Toomey told reporters Thursday.
The amendment by Wyden, Toomey and Lummis would clarify the definition of broker to only mean people who transact on exchanges where consumers buy, sell and trade digital assets. The definition in the amendment would provide broader exemptions from the regulation of cryptocurrencies, leaving out reporting requirements for minors.
The proposal, however, is opposed by the Biden administration. The Washington Post reported that the Secretary of the Treasury Janet Yellen
Janet Louise YellenDelta variant casts shadow over upcoming McConnell jobs report: GOP to block debt ceiling hike if Democrats pursue spending plans Yellen tries to quell Democrats’ fury over ban on evictions MORE lobbied Wyden on the matter and spoke with lawmakers on Thursday to raise objections to Wyden’s effort.
The Warner, Portman and Sinema amendment would instead amend the bill more narrowly to create exemptions for “proof of work” minors.
Proof of work is a method widely used in cryptocurrency, including bitcoin, to validate transactions and mine new tokens. It requires members to solve a math puzzle to validate transactions. But emerging bitcoin competitors may require decentralized, less power-hungry validation methods that could be subject to reporting requirements based on the Warner, Portman, and Sinema Amendment.
White House spokesman Andrew Bates said the administration supported Warner, Portman and Sinema’s amendment, which “strikes the right balance.”
“The administration believes this provision will strengthen tax compliance in this emerging area of finance and ensure that high-income taxpayers contribute what they owe under the law. We are grateful to President Wyden for his leadership in pushing the Senate to address this issue, but we believe that the alternative amendment proposed by Senators Warner, Portman and Sinema strikes the right balance and takes an important step forward in promoting tax compliance, ”Bates said in a statement.
The cryptocurrency industry, however, has broadly supported the Wyden Amendment and denigrates the White House-backed alternative.
The Blockchain Association tweeted Thursday urging its supporters to call on their senators to vote ‘yes’ for the Wyden, Toomey and Lummis amendment, and the association released a statement on Wednesday including more than 100 stakeholders in the crypto ecosystem. -mint urging Senate leaders to support it.
The association’s executive director, Kristin Smith, called the Senate’s alternative proposal “terrible.”
A spokesperson for venture capital firm Andreessen Horowitz also said the Warner, Portman and Sinema Amendment would be a “staggering loss to America and our ability to remain the epicenter of innovation in the world.” .
“The proposed amendment recklessly places an impractical reporting requirement on the shoulders of software developers and proof-of-stake blockchain validators,” the spokesperson said in a statement.
Jordan Carney contributed.
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