Senator Ted Cruz of Texas is attempting to remove Biden’s infrastructure bill because it contains wording that is bad to cryptocurrency brokers.
Biden’s $1.2 trillion infrastructure package, which was hundreds of pages long, included a provision that would require brokers to send over customer data to the IRS in order for crypto holders to pay capital gains taxes.
Another significant issue with the bill is that it broadly defines a broker and might force miners, altcoin stakers, wallet providers, and other developers to send up “client” data, which would be nearly impossible to achieve because they would only have access to a person’s wallet address.
Senator Ted Cruz of Texas is attempting to remove wording describing who is a cryptocurrency “broker” from a multibillion-dollar infrastructure package that was recently approved into law.
According to Cruz’s office, if passed, the proposed law would eliminate wording targeted at increasing reporting requirements for “brokers” in the digital asset space. The measure is similar to Cruz’s earlier attempt to remove the language from the infrastructure package in August, as previously reported.
Sen. Ted Cruz (R-Texas) presented legislation this week to repeal an overly broad and poorly drafted provision from the infrastructure bill that imposes additional reporting requirements on numerous blockchain sector players. This clause will hinder industry innovation, jeopardise the privacy of many Americans and cryptocurrencies, and most certainly shift critical portions of the sector overseas to nations such as China.
Sen. Cruz stated upon the introduction of this bill::
“The Lone Star State has quickly emerged as the main hub for the cryptocurrency industry, and that exciting industry is now in danger of being stifled and driven overseas by an overreaching provision in this newly-signed, reckless spending package. As a deliberative body, the Senate should have done its job and held hearings to properly understand the consequences of legislating on this emerging industry before we risked the livelihoods and privacy of participating Americans. I urge my colleagues in the Senate to repeal this harmful language that will create regulatory uncertainty and in turn an unnecessary barrier to innovation.”