Yesterday, the bill on the taxation of digital currencies was approved by the US Senate with 69 votes in favor and 30 votes against. Now that the bill has been submitted to the House of Representatives to become law, experts say there is still room for change in the clauses of the bill.
to the Report Crypto Briefing The $ 1.2 trillion infrastructure investment bill was approved by the Senate with 69 votes in favor and 30 against after the end of lengthy negotiations by US senators. The bill contains clauses that could pose problems for the digital currency industry, and requires all businesses identified as “digital currency brokers” to apply the KYC process to all their users.
The controversial bill was passed by the Senate yesterday after a vote of 69 in favor and passed to the House of Representatives.
One of the key problems with this concept is the definition of a digital currency broker. In the US Infrastructure Investment Plan, any person or organization that facilitates digital currency transactions is considered a broker.
Legal experts believe that the concept could include evidence-based network miners, stock-based network validators, and even protocol developers.
Another clause in the bill requires brokers to go through the process of customer authentication and adhere to strict tax reporting guidelines. The $ 1.2 trillion bill aims to raise $ 28 billion in funding by taxing the digital currency industry.
Following the unification of the digital currency community, two amendments were introduced by senators to counter the passage of digital currency tax regulations.
The first amendment, proposed by Warner, Cinema, and Portman, specifically removed proof-of-business network miners, mining hardware makers, and service providers from the category of brokers.
The digital currency community opposed the amendment because it did not address stock-based network validations. The amendment eventually led some to speculate that the Senate, in particular, was targeting the new Ethereum network mechanism to counter the emerging decentralized finance industry (DeFi).
Reports went on to say that US Treasury Secretary Janet Yellen had personally called for the bill to be passed because she believed the decentralized finance industry was a threat to the current financial system. The release of these reports has strengthened the hypothesis that some senators attempted to counter Difai. The White House, on the other hand, supported the amendment proposed by Warner Bros., Cinema and Portman.
Other U.S. senators, Lummis, Wyden and Toomey, introduced another amendment that was more in line with the interests of the digital currency industry than the previous one, and received wider support from the digital currency community.
Finally, the senators involved in the bill introduced a joint amendment. Because the amendment was submitted too late, it needed the approval of every 100 members of the US Senate to pass it. Senator Richard Shelby, who had previously been barred from submitting the amendment, was the only one out of 100 to vote against the bipartisan amendment. In his amendment, Shebli called for a $ 50 billion military budget increase, which the Senate opposed.
Finally, no amendments were considered regarding the clauses related to digital currencies, and with yesterday’s vote, the infrastructure investment bill was approved by the Senate and submitted to the House of Representatives. However, Jerry Brito, CEO of the Coin Center lobbying group, insists that the digital currency community should not give up. He said that after the Senate rejected the amendments, the next step in the fight against the bill is to try to introduce a new amendment to the US House of Representatives, which will start from the very beginning with the vote of the House for this bill.