Ten members of the U.S. House of Representatives have called
on House Speaker Nancy Pelosi to address the problem with the crypto
provision in the infrastructure law. They explained that the current
definition of a broker in the law “would increase uncertainty in the
cryptocurrency industry, pick winners and losers … all while eroding our
country’s competitive edge against other countries in the digital asset
marketplace.”
10 Lawmakers Urge House Speaker Pelosi to Address the Crypto Provision in Infrastructure Law
Ten members of the U.S. House of Representatives have jointly sent a
letter to House Speaker Nancy Pelosi about the crypto provision in the
$1 trillion bipartisan infrastructure bill which President Joe Biden
signed into law this week.
The letter was signed by Representatives Darren Soto, Ro Khanna,
Stacey Plaskett, Eric Swalwell, Tim Ryan, Susan Wild, Marc Veasey, Jake
Auchincloss, Al Lawson, and Charlie Crist.
“We write to express our concerns with the digital asset provision
(Section 80603) of H.R. 3684, the Infrastructure Investment and Jobs
Act, otherwise known as the Bipartisan Infrastructure Framework (BIF),”
the letter dated Nov. 15 begins. “As you and our colleagues in both
chambers work to ‘build back better’ we must ensure appropriate taxation
and regulation of the cryptocurrency industry,” it states.
Emphasizing that “those making gains in the cryptocurrency markets
should pay their fair share of taxes,” the letter urges regulators to
also “ensure this innovative technology is not making it easier for
criminals to circumvent our laws and regulations.” It continues:
As it is written today, however, the BIF would increase
uncertainty in the cryptocurrency industry, pick winners and losers, and
thwart Internal Revenue Service (IRS) efforts to accurately tax
cryptocurrencies, all while eroding our country’s competitive edge
against other countries in the digital asset marketplace.
The lawmakers stressed, “We must have reasonable regulation on
cryptocurrencies, but that legislation should not cripple the industry
in doing so.”
The letter proceeds to explain the problem with the definition of a
“broker” in the infrastructure law. “As it is drafted 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 beyond the scope of brokerage services,” it explains.
“Additionally, many entities included in this expansion have no ability
to access the personal, customer information that brokers are required
to report to the IRS.”
The lawmakers added, “Well-crafted regulation promotes innovation and American ingenuity,” 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 support will help ensure BIF does not capture validators,
wallet providers, and others who do not have the ability to comply,” the
letter concludes.
Last week, Senators Cynthia Lummis and Ron Wyden introduced a bill to
amend the definition of a broker in the infrastructure law’s crypto
provision. In addition, Senator Ted Cruz introduced a bill of his own to
totally repeal the crypto provision. Currently, the requirements in the infrastructure law will not take effect until Jan. 1, 2023.
