US Senate To Vote on Crypto Tax for Infrastructure Bill

The U.S. Senate is about to vote on the Biden administration’s infrastructure bill. The bipartisan infrastructure plan may introduce ‘disastrous’ changes to the cryptocurrency regulation, in particular tightening the crypto tax reporting requirements.

America’s leading crypto voices argue that voting the wrong way could push the industry out of the country.

The amendments to the crypto tax reporting of the bill didn’t make it to the Senate floor over the weekend. But the Senate will continue to consider. They may have the final vote on the amendments “until Monday night into Tuesday morning,” according to CNN. Also, the crypto provision and other amendments will be dealt with before the final vote.

The infrastructure bill wants to raise $28 billion in tax from crypto over a decade. Therefore, It requires crypto entities to provide customer information and help report those who hold crypto. There are two major amendments to the crypto provision of the bill.

One amendment, which the crypto industry supports, wants only custodial entities like crypto exchanges to have the reporting obligation. This would exclude non-custodial entities like Bitcoin miners, DeFi protocol developers, Ethereum wallet operators.

Another amendment, which Biden supports, wants to exempt those that help run Proof-of-Work (PoW) blockchains, like Bitcoin miners. But this would oblige proof-of-stake (PoS) entities like nodes, Ethereum 2.0 validators and protocol developers to report customer information.