Report: The White House Backs New Crypto Amendment to its Infrastructure Plan

The crypto community is fighting against a last-minute crypto tax-related amendment to the White House’s Infrastructure plan. A report unveiled this news earlier today, noting that the amendment is only looking to exempt Proof-of-Mining validators and sellers of hardware and software wallets from expanded taxation. Reportedly, this is the latest development in the White House’s crypto provisions infrastructure plan, which aims to raise $28 billion for infrastructure funding.

According to the report, Senators Mark Warner and Rob Portman proposed the frenzied amendment. However, the proposal’s wording rubbed the crypto community in the wrong way, seeing as it suggests developers and Proof-of-Stake validators would be subject to a higher level of reporting and taxation. To this end, some crypto proponents have come out to declare that this change is unworkable.

After the Senators made this suggestion, Washington Post’s Economics Reporter, Jeff Stein, tweeted that the White House is backing the proposal.

Late breaking – White House is coming out formally in support of Warner-Portman-Sinema crypto amendment, implicitly against the Toomey-Wyden-Lummis plan

— Jeff Stein (@JStein_WaPo) August 6, 2021

Bashing Warner and Portman’s amendment, the Executive Director of Coin Center, Jerry Brito said the proposal is disastrous. He added that Congress would be choosing winners and losers if it passed this bill.

Wow. Sen. Warner and Portman are proposing a last minute amendment competing with the Wyden-Lummis-Toomey amendment. It is a disastrous. It only excludes proof-of-work mining. And it does nothing for software devs. Ridiculous!

Here is all it excludes: pic.twitter.com/FA7K6NU2s0

— Jerry Brito (@jerrybrito) August 5, 2021

New Amendment Might Stifle Innovation

By announcing support for the new amendment by Senators Warner and Portman, the White House seems to have denied a rival proposal by Senators Cynthia Lummis, Pat Toomey, and Ron Wyden, which has a wider list of exemptions. According to the trio, some of the provisions in the infrastructure plan should not apply to developers, miners, or blockchain companies in the crypto industry.

Touting this proposal, Senator Toomey said it clearly describes the definition of a broker. As such, non-financial intermediaries, such as miners, network validators, among other service providers, will not have to adhere to the expanded reporting requirements of the bipartisan infrastructure plan. He lauded Congress for its efforts to better understand and legislate on crypto-related issues. However, he asserted that Congress should ensure it does not enact burdensome regulations, which snuff out innovation.

By clarifying the definition of broker, our amendment will ensure non-financial intermediaries like miners, network validators, and other service providers are not subject to the reporting requirements specified in the bipartisan infrastructure package. https://t.co/Fz09L3AyLL

— Senator Pat Toomey (@SenToomey) August 4, 2021

Specifically, the proposal notes that the definition of a broker does not include parties involved in the validation distributed ledger transactions, anyone that develops digital assets or their protocols, or anyone that deals with mining software or hardware.

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