As the heavily debated infrastructure bill moves through Congress, cryptocurrency supporters are speaking out in the United States House of Representatives in an effort to combat controversial crypto legislation.
The unmodified bill imposes requirements on crypto exchanges and other entities to report transactions to the IRS for tax reporting purposes, which are structured similarly to the guidelines imposed on traditional financial brokers.
Crypto-friendly lawmakers and industry supporters argue that the new regulations imposed on these crypto entities will severely stifle technological innovation in the United States. They also claim that it would impose unreasonably high requirements on validators, cryptocurrency miners, and digital wallet developers who don’t know who their buyers and sellers are.
California Democrats, including Reps. Ro Khanna, Eric Swalwell, and Anna Eshoo, have joined Reps. Bill Foster (D-IL) and Darren Soto (D-FL) in supporting revisions to the crypto amendments.
Representative Soto told us that he is confident that House members are becoming more supportive of the bill’s revision.
“Members are starting to take notice. There is growing bipartisan support for ensuring that this language is correct.”
The Biden administration is reportedly preparing to implement the original bill because officials believe it will give them more flexibility in monitoring the crypto industry.
Eshoo urged House Speaker Nancy Pelosi to address the original bill’s “unworkable regulations.” According to an unnamed House leadership aide, Pelosi intends to review the bill’s crypto-related language.
Soto claims that pro-crypto congressmen will try “every avenue” to change the tax rules, whether through the Democrats’ $3.5 trillion budget package or through standalone legislation.