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The US Senate is on the verge of passing a bill on taxation of digital currencies; More restrictions on the way?


The Senate Infrastructure Investment Plan, which included a digital currency tax clause, is expected to be put to a vote in a few days. However, some US digital currency senators and activists continue to oppose the plan.

to the Report The US Senate is preparing to vote on a $ 1 trillion infrastructure investment bill later this week. The bill is about funding infrastructure development such as roads, bridges and safe water in the United States.

In part of the bill’s proposals, the authors provide a clause that extends the definition of “broker” to those who trade in digital currencies. Brokers must submit Form 1099 on behalf of their clients to the Internal Revenue Service (IRS). Form 1099 is one of the US Internal Revenue Service forms used to handle taxpayers’ affairs.

However, instead of considering only digital currency holders and exchanges as digital brokers, the plan is large enough to provide actors, including bitcoin miners, creditors who process and even process transactions on proof-of-stock networks. Involve developers of Decentralized Finance Protocols (DeFi) that provide unsecured services.

Senators Ron Wyden, Cynthia Lummis, and Pat Toomey introduced an amendment that severely criticized digital currency advocates, who found it almost impossible to implement the plan. The band exempts. Subsequently, Senators Mark Warner and Rob Portman added an amendment that explicitly exempts network-based mechanism miners and wallet providers from implementing the provisions of the plan.

Proponents of her case have been working to make the actual transcript of this statement available online. Proponents of her case have been working to make the actual transcript of this statement available online. They argue that the amendment is not impartial, preferring bitcoin and other evidence-based networks to stock-based networks, and imposes reporting requirements on those who are unable to implement the plan.

What will happen in the future?

The US Senate is on the verge of passing a bill on taxation of digital currencies;  More restrictions on the way?

Sources familiar with the process of reviewing the bill have said that none of the amendments will necessarily be voted on. Majority leader Chuck Schumer and Senate Minority Leader Mitch McConnell are debating which of the 500 registered amendments they will vote on. Senator Bill Hagerty also recently removed an agreement from the agenda that required the Senate to seek the unanimous consent of lawmakers to address issues such as bill spending.

Delegates will meet until Saturday to try again. Senator Hagerty’s position seems ineffective. Although his actions limit the ability to make reforms, they do not stop the passage of the bill before the end of voting and the end of negotiations.

An informed source said:

Something like the Warner Bros. amendment may not be voted in the Senate.

It is worth noting that if the deputies do not agree on the amendments, the same main bill will be put to a vote.

The Senate will vote on the entire bill after considering all the amendments and agreeing or disagreeing on them. The bill needs 60 votes to be implemented. If the Republican senators who are reforming the bill in good faith are seen as a sign of the party’s opposition to the original plan, the Democrats, on the other hand, have enough support on their side to pass the package.

Even if the bill is passed, do not expect the story to end soon. The House of Representatives had previously approved a $ 715 billion infrastructure investment bill that was in line with the official views of both parties. The bill did not look like an unmodified version of the Senate bill, and it is not going to look like it. For the bill to become law, the House and Senate must agree on it.

House Democrats could easily put the bill on President Biden’s table by approving a draft of the Senate, but they are in no hurry. First of all, we must say that the senators are supposed to be on vacation in their constituencies until September 20 (September 29). Second, House Majority Leader Nancy Pelosi is waiting for the Senate to approve a larger package that would cost $ 3.5 trillion and cover issues related to health, education, climate change and other democratic priorities. puts. Because Senate Democrats face more opposition to getting the package, even if they see it as part of a budget reform process that requires 51 votes to pass, it may take some time.

According to a report in the New York Times this week, the senior Democrats have spoken of their desire to come up with a more comprehensive plan for infrastructure spending.

Members of the Congress Bloc China Commission may also sabotage during these actions. Republican Ted Budd and Tom Emmer, Democrats, and Darren Soto, a Democrat, wrote a letter to Senate Majority Leader Schumer in support of the Weiden, Lumis and Tommy Amendment. They gave.

Darren Soto tweeted:

I joined Republican lawmakers Ted Bad and Tom to support the bipartisan Senate amendment to regulate digital currency taxation in the bipartisan-backed infrastructure investment package. We will continue to strive to innovate in digital currency.

If the House and Senate can get close enough to legalizing infrastructure development, they can discuss their differences at a conference with members of the House Transport and Infrastructure Committee and the Senate. It is only by doing so that the bill goes to Biden’s table, and after he signs it, the bill becomes law.

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