The recent infrastructure bill being drafted by Senate is full of holes when it comes to the crypto legislation section of the bill. It might have been considered a ‘cute’ mistake in the crypto industry if the errors made within the legislations were reconsidered by the Senate itself.
But the pointers were raised by the crypto community as the bill twists the very definition of ‘broker’ as anyone who is responsible for providing the services of trading cryptocurrency from one place to another either all by themselves or on behalf of any other person. According to this definition, every entity linked with the crypto market is a ‘broker’. The miners, wallet providers, and traders are all being termed ‘brokers’ in the new infrastructure bill and are convicted of heavy taxation.
All these different versions of a ‘broker’ according to Senate should be exempted from crypto taxation because these are not brokers but individual units of the crypto industry working in their own individual capacity. The service they provide is also not consistent; a broker can’t wave off taxes by being ‘busy with other clients’ or not being a ‘direct emissary’ for some crypto-oriented deal, whereas a miner or a wallet provider can.
New Infrastructure Bill is Under Revision
Because these are only accountable for the time when they were engaged in ‘mining’ or lending out their wallet to a user for the sake of withholding some cryptocurrency, these are not your ‘regular brokers’.
The initial draft of the bill has certain provisions, which according to Senator Ted Cruz, would have been devastating for the crypto market. The good thing is that the bill is currently being revised; the language of the crypto legislation that is confusing and all messed up is being altered. So, it is a great thing for the crypto community, but it took various hours of pleading and convincing on the crypto community’s end to get the bill revised by the senate.
CEO of Twitter Jack Dorsey has also commented on the situation by urging the Senate to reconsider various provisions of the bill, so it is a win-win situation for both the senate and the crypto market.