Market Analysis Report (13 Aug 2021)

U.S. Congresswoman Anna Eshoo (D-Calif.) has sent a letter to Speaker Nancy Pelosi (D-Calif.) asking to amend the cryptocurrency tax provision included in the Senate’s infrastructure bill. Eshoo wrote that the current definition of the term “broker” may be too broad.

The letter said:

“When the House takes up the Senate bill, I encourage you to amend the problematic broker definition in Section 80603 of the legislation.”

It sees Eshoo join a growing number of bipartisan lawmakers pushing back against the crypto provision. House Financial Services Committee Patrick McHenry (R-N.C.) and a handful of others on both sides of the political spectrum have expressed support for changing the language.

The infrastructure bill itself will fund $1 trillion in infrastructure improvements and new initiatives around the country, and includes some measures to help pay for the added expense. It currently describes a crypto broker as any party “responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”

Some in the cryptocurrency space have expressed concern for the language, as the bill could define miners and other network validators as brokers. In a joint statement the Blockchain Association, Coinbase, Coin Center, Ribbit Capital, and Square expressed concern over the language included in the infrastructure bill, as it will place “unworkable requirements on crypto technology.”

Senators Ron Wyden (D-Ore.), Pat Toomey (R-Pa.), and Cynthia Lummis (R-Wyo.) have proposed an amendment to narrow the definition. The Senate has, however, proceeded without considering any amendments. Eshoo endorsed a compromise amendment that had been blocked under Senate procedural rules.

Source: https://www.cryptocompare.com/email-updates/daily/2021/aug/13/