Dollar note and Bitcoin pictured together
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Some U.S. senators introduced an amendment to the infrastructure bill Wednesday attempting to clear up confusion about cryptocurrency “brokers,” based on language in the existing version that could roil the crypto markets if passed.
The update, filed by Sens. Ron Wyden, D-Ore.; Pat Toomey, R-Pa.; and Cynthia Lummis, R-Wyo. would specifically ensure the term “broker” excludes validators, hardware and software makers and protocol developers.
If included in the final bill, the amendment would be a win for the crypto industry, whose advocates have said was at risk of losing innovators and investors interested in doing crypto business in the U.S. The original language could also force some companies to shut down if they can’t comply or move offshore, these advocates said.
The Senate initially included crypto in the infrastructure bill as a “pay-for” provision that would help it generate revenue for the bill through increased tax compliance on crypto companies. These parties would have to file reports to the IRS.
The backlash from the crypto industry was a response to the bill’s broad definition of “broker” to include entities that don’t actually broker digital assets or that don’t have customers whose information needs to be reported to the IRS.
“By clarifying the definition of broker, our amendment will ensure non-financial intermediaries like miners, network validators, and other service providers —…