- On Tuesday, the controversial crypto infrastructure bill will be put on a vote unamended.
- The bill is dubbed “problematic” as it requires miners, validators, and even crypto wallet makers to file KYC requirements.
- Senators Ron Wyden, Cynthia Lummis, and Pat Toomey had introduced a fair amendment that had the support of the crypto community.
On Tuesday, the controversial crypto infrastructure bill that aims to bring taxation to crypto transactions will be put on a vote unamended. The bill, which seeks to earn the US up to $28 billion, is considered “hugely problematic.”
The controversy arises around the bill’s definition of a crypto broker. In the original draft, the term broker encompasses such a broad interpretation that miners, validators, and even crypto wallet makers could be included. Addressing this problem, a number of crypto advocates have displayed concern regarding the disastrous impacts of the bill on the US crypto industry.
“While improvements to our nation’s infrastructure are important, the hastily drafted language around revenue raising provisions in the infrastructure package could have unintended consequences that strike at the heart of innovation in the cryptocurrency ecosystem, risk driving jobs overseas, and may jeopardize Americans’ Fourth Amendment protections,” said Kristin Smith, executive director of the Blockchain Association.
The Bill to Go For Voting Unamended
Courtesy of hard work from some crypto veterans, the much-criticized infrastructure bill soon received an amendment. The first amendment, which was backed by senators Ron Wyden, Cynthia Lummis, and Pat Toomey, excluded miners, crypto wallet makers, and developers from being categorized as brokers.
While this amendment seemed pretty acceptable, two White House senators, Mark Warner and Rob Portman, introduced an alternative amendment at the last moment. The competing bill, which was called “disastrous” by the Coin Center CEO, did not exclude PoS miners, validators, crypto developers, or wallet makers from being defined as brokers.
Nevertheless, Jake Chervinsky, general counsel for Compound Labs, has recently revealed that the senate has ended talks regarding the taxing bill without amendment. “The Senate has voted 68-29 to end debate. We wanted a vote on the Wyden amendment first, or on a Wyden-Warner compromise, but no luck,” he said.
Sunday night infrastructure bill update:
The Senate has voted 68-29 to end debate. We wanted a vote on the Wyden amendment first, or on a Wyden-Warner compromise, but no luck.
The Senate has to wait until Tuesday to do a final vote. They might still amend the bill before then. https://t.co/VFrmnZqOPQ
— Jake Chervinsky (@jchervinsky) August 9, 2021
Since the vote was procedural, the Senate still has one day to pass an amendment by unanimous consent. Meanwhile, Ryan Selkis, founder and CEO at Messari, said that “the Portman-Warner amendment is no longer even on the table. We either get to the Wyden amendment or it’s the original language.”
Selkis added that given the situation, the Wyden amendment is greatly unlikely to see any floor time. He said the bill might get “flung back to the House, which can offer its own amendments.”
