Soon
- Amendments to the cryptocurrency provision of President Biden’s infrastructure bill did not reach the Senate yesterday.
- Senate will continue to evaluate the amendments. It’s today’s meeting.
- Warner-Portman amendment extended the exemption to proof-of-stake networks, but the industry objects that it still picks winners and losers.
Yesterday, the Senate did not have time to vote on two rival amendments determining which crypto entities must provide customer information to help pay Joe Biden’s $ 1 trillion infrastructure bill.
Senate is now expected to meet to vote on the amendments at noon EDT (16:00 UTC) on Sunday. result could cause ripples in the US crypto industry, and executives fear that one of the results could force decentralized financial institutions out of the country.
One of the amendments, proposed by Senators Ron Wyden (D-OR), Cynthia Lummis (R-WY) and Pat Toomey (R-PA), and favored by the cryptocurrency industry, will exempt non-custodial entities such as Bitcoin miners. . and portfolio operators, from the delivery of customer information to the tax authorities.
“We shouldn’t involve people who don’t really run a centralized exchange,” Senator Toomey said. Business Insider yesterday.
Involved by Toomey in discussions about cryptocurrencies, some problems remain unsolved:
“Someone in the business of running a centralized exchange should be obligated to report transactions for their clients… but we shouldn’t involve people who don’t actually operate a centralized exchange.”
– Joseph Zeballos-Roig (@josephzeballos) August 8, 2021
other amendment, proposed by Senators Mark Warner (D-VA) and Rob Portman (R-OH), and favored by President Biden, was significantly revised after the crypto industry poured cold water on it.
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Originally, it exempted proof-of-work entities, such as Bitcoin miners, but did not remove the tax reporting requirements for proof-of-stake entities, such as Ethereum 2.0 validators. cryptocurrency industry claimed this was impractical because non-custodial entities do not collect information about the people who use them.
Since then, Senators Warner and Portman have revised their amendment to exempt both proof-of-work and proof-of-stake entities, but not other consensus mechanisms, such as Ripple’s “Federated Byzantine Agreement” or the mechanism. of «Test» of the History «of Solana. .
cryptocurrency industry doesn’t like the review either, as it favors two consensus mechanisms for no clear reason.
Senator Warner changed his amendment to protect consensus mechanisms beyond the PoW. A small positive step, but not good enough.
It is simply unrealistic that this is the way Congress wants to handle major cryptocurrency laws. We need time to make smart decisions. This process is broken. https://t.co/NftUjfnqHI
– Jake Chervinsky (@jchervinsky) August 7, 2021
A Bloomberg reporter Ella said that Toomey and Warner were caught in a conversation “near the Senate well,” but there were no formal discussions.
“I want to crack down on tax gimmicks,” Senator Wyden said. Business Insider yesterday. “I just don’t want to destroy the innovation that comes from a decentralized network.
Senate is considering dozens of amendments, and the reluctance of some senators to speed up the vote on the final approval of the bill could push it. “Until Monday night until Tuesday morning, According to Manu Raju, congressional correspondent for CNN. But the crypto fix and other amendments need to be addressed before the final step.
Given the main flaws in the impractical and devastating crypto provision of the underlying bill, I have also tabled a separate amendment to remove the whole issue, in case a bipartisan agreement cannot be reached.
We must act now to stop this.
– Ted Cruz (@tedcruz) August 7, 2021
And if senators vote against both crypto amendments, other amendments could be tabled. Senator Ted Cruz, for example, tabled his amendment if Congress fails to reach consensus.
Alternative amendments, such as Cruz’s, may be needed if both amendments fail because cryptocurrencies cannot be removed from the bill. politically feasible, said Jerry Brito of DC-based cryptocurrency think tank Coin Center.
4 / refore, an amendment affecting the supply of cryptocurrencies, which is valued at ± $ 30 billion, is not something that has a chance to pass. Working on such a thing is a waste of time, as much as it would be my preferred option.
– Jerry Brito (@jerrybrito) August 7, 2021
money has to come from somewhere and Congress will not allow cryptocurrencies to threaten the account, he said.
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