August 9, 2021 10:12 UTC
August 9, 2021 10:12 UTC
Negotiations in the Senate on the controversial encryption provisions of the U.S. Infrastructure Act have ended, but have not changed, indicating that the original bill will be voted on on Tuesday.
These regulations aim to increase the $28 billion in infrastructure funding by expanding the taxation of digital assets, and can impose a wide range of third-party news requirements on any crypto company that is considered to constitute a “broker.”
On August 9th, Jake Chervinsky, General Counsel of Compound Labs, said on Twitter that the Senate ended the discussion on the terms with 68 votes in favor of 29 votes against, and will suspend the discussion until the final vote on Tuesday.
However, Chervinsky emphasized that it is still possible for the Senate to pass amendments to the bill by unanimous consent before the final vote.
Negotiations in the Senate on the controversial cryptocurrency tax provisions of the U.S. Infrastructure Act are deadlocked, and the unmodified version of the bill will be voted on during the working day.
The broad language that outlines crypto “brokers” in the terms has caused shocks throughout crypto transactions. Analysts inferred that miners, mortgagers and alternative network verifiers, as well as computer code developers, are likely to be affected by the demand for third-party tax news. Although unable to possess the personal data of its counterparties.
The crypto industry supports a change planned by Senators Pat Toomey, Rob Wyden, and Cynthia Lummis that may limit the scope of the definition of crypto “brokers” to avoid the supply of miners, verifiers, and computer code developers. However, most lawmakers support Rob Portman, Mark Warner, and Kyrsten Sinema’s competitive changes, which may completely exempt miners, proof-of-stake validators, and wallet vendors from bills.
According to Lummis’ Twitter post on August 8, the two sides are currently at a deadlock on the 30-hour rule, which allows senators to consider up to 30 hours before choosing.
Lummis declared that although “some senators want to maintain 30 hours of expertise on infrastructure bills to raise awareness of their labels,” Senate lawmaker Chuck Schumer “wants to quickly accept orders to focus on alternative legislation and will not initiate changes. Vote unless that happens.” However, Lummis added:
“If we can vote on the amendment, I believe the digital asset community will be satisfied with the result.”
If the Senate is passed on Tuesday, the legislation will still need to clean up the House of Representatives before it becomes law, giving it an opportunity to amend the encryption clause.