The U.S. House of Representatives is set to vote on a 1 trillion bilateral infrastructure bill that would require digital asset brokers to report their transactions to the Internal Revenue Service if passed.
The bill aims to raise 28 28 billion a decade from the crypto industry for roads, bridges, tunnels and other infrastructure.
The crypto industry is concerned that the definition of “broker” provision is too broad, as it does not explicitly exclude miners, node operators, stackers, software developers and wallet providers. Some companies do not have enough customer information to comply with such reporting requirements.
According to the provision, brokers are “responsible for providing any services on a regular basis to transfer digital assets on behalf of another person”.
Lucia Della Ventura, a researcher on decentralized artificial intelligence at Trinity College, said, “How this provision adapts to digital resource technology does not define how individuals and organizations involved in decentralized transactions may face a major difficulty in practicing.” Dublin, bear marketwatch via email.
House Speaker Nancy Pelosi said Thursday morning that she was still planning a House vote later in the day. A House notice late Thursday night said no vote was expected before 2 p.m.
Although Bloomberg reported in August, citing Treasury officials, that developers, miners and software providers in the crypto industry will not be noticed by the rules, the industry has been calling for the bill to be amended. The Senate had earlier rejected an amendment that clarified the definition of broker in the provision.
“The law should be written in a way that is crystal clear, but not based on interpretations from different administrations,” a spokesman for the Crypto Lobby Group Blockchain Association told MarketWatch.
“So our view is still that this provision is really badly written and fails to understand the relationship between the entities of open blockchain networks,” the spokesman said.
If the infrastructure bill is passed by the House, the blockchain association will “put our power behind that legal amendment,” the spokesman said.