Ten members of the United States House of Representatives have urged House Speaker Nancy Pelosi to address the issue with the crypto provision in the infrastructure bill. They explained that the current legal definition of a broker “would increase uncertainty in the cryptocurrency industry, pick winners and losers… all while eroding our country’s competitive edge in the digital asset marketplace.”
10 Members of Congress have asked House Speaker Nancy Pelosi to address the cryptocurrency provision in the Infrastructure Act.
Ten members of the United States House of Representatives have written to House Speaker Nancy Pelosi in response to the crypto provision in the $1 trillion bipartisan infrastructure bill signed into law this week by President Joe Biden.
Representatives Darren Soto, Ro Khanna, Stacey Plaskett, Eric Swalwell, Tim Ryan, Susan Wild, Marc Veasey, Jake Auchincloss, Al Lawson, and Charlie Crist all signed the letter.
“We write to express our concerns regarding the digital asset provision (Section 80603) of H.R. 3684, the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Framework (BIF),” the Nov. 15 letter begins. “As you and our colleagues in both chambers work to ‘build back better,’ we must ensure appropriate cryptocurrency taxation and regulation,” it says.
The letter urges regulators to “ensure that this innovative technology does not make it easier for criminals to circumvent our laws and regulations,” emphasizing that “those making gains in the cryptocurrency markets should pay their fair share of taxes.” It goes on:
However, as written today, the BIF would increase uncertainty in the cryptocurrency industry, pick winners and losers, and stymie Internal Revenue Service (IRS) efforts to accurately tax cryptocurrencies, all while eroding our country’s competitive edge in the digital asset marketplace.
“We must have reasonable regulation on cryptocurrencies,” the lawmakers said, “but that legislation should not cripple the industry in the process.”
The letter then goes on to explain the issue with the definition of a “broker” in the infrastructure law. “As written today, the provision would include miners and other validators, as well as software and hardware wallet makers, who do not engage in trading activities and are outside the scope of brokerage services,” it says. “In addition, many of the entities included in this expansion have no access to the personal, customer information that brokers are required to report to the IRS.”
“Well-crafted regulation promotes innovation and American ingenuity,” the lawmakers added, elaborating:
As such, we request you to consider a pathway to address the digital asset provision of the BIF in future legislation and during ongoing discussions surrounding this provision.
“Your assistance will help ensure that BIF does not capture validators, wallet providers, and others who are unable to comply,” the letter concludes.
Senators Cynthia Lummis and Ron Wyden introduced legislation last week to change the definition of a broker in the infrastructure law’s crypto provision. Furthermore, Senator Ted Cruz introduced his own bill to completely repeal the crypto provision. Currently, the infrastructure law’s requirements will not go into effect until January 1, 2023.