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Senators Wants Crypto Clarity To President Biden’s Infrastructure Bill

Joe Biden’s controversial Infrastructure Bill almost has its implementation in place. However, there are still consultants and politicians who want to clarify its contents.

Today, Sen. Cynthia Lummis (R.WY) announced a legal proposal to protect the country’s crypto industry. The legislation would improve certain concepts in the Infrastructure Bill. This includes the definition of “broker.”

Multiple Meanings of a Word

Lummis-Wyden’s bill is significant because it provides a legal definition for the term “broker.” This excludes crypto miners, stakers and developers, wallets, custodials, and wallets.

The “Bill to amend the rules of construction applicable information reporting requirements imposed upon brokers with respect to digital assets and for other purposes” text is very simple. It only contains one article that restricts the definition of broker as it is used in the Infrastructure Law.

The Infrastructure Law structure would require service providers to give the government private information about their users, even though it may not be possible for all of them (e.g. DeFi developers or non-custodial wallet provider). Experts claim that the Infrastructure Act, as it stands today, would hinder the free development and growth of the US crypto market.

The Lummis-Wyden bill, if it is passed, would be a win for cryptocurrency enthusiasts.

Both Wyden and Lummis expressed concern about the future development of the industry. Lummis stated in an official press release that this was an attempt to safeguard the innovation and development within the crypto ecosystem.

“With the infrastructure bill on the verge of becoming law, it’s critically important to protect innovation in the digital asset space. Our bill makes clear that the new reporting requirements do not apply to individuals developing block chain technology and wallets.”

Lummis also stated that the bill aims to ensure that cryptocurrency traders pay capital gain taxes.

The Infrastructure Bill

The Infrastructure Bill was passed by 226 votes in favor, compared to 206 votes against earlier this month. The bill would require crypto traders to file 1099 forms at the IRS. American crypto companies will have to reveal the personal data of their customers (IDs, addresses, etc.)

Cynthia Lummis is a well-known Bitcoiner and critic of the Infrastructure Bill. She tried to amend it during Senate debate sessions but was unsuccessful.

This would allow the law to be made more crypto-friendly without having to go through all the political wrangling required for President Joe Biden’s most ambitious suggestion at the moment.