- Senators Cynthia Lummis and Senator Ron Wyden have introduced a bill that seeks to redefine the definition of digital asset brokers.
- With this project they seek to exclude them from submitting customer data to the Internal Revenue Service of cryptocurrency miners, stakers, wallet providers and blockchain software developers.
The United States is one of the countries that has reviewed all issues related to digital assets in greater detail, being very careful in each step it takes with the argument of taking care of national sovereignty, and its economy, however, also has some supporters in the government of this type of digital money.
Senator Cynthia lummis is one of the people in favor of the crypto environment, as he gained fame for his adoption of Bitcoin and his disdain for the expansive monetary policy of the Federal Reserve of the United States Federall (Federal Reserve System or Fed).
Likewise, your partner, Senator Ron Wyden has been a longtime advocate for privacy protections for American citizens.
It is not surprising, then, that both politicians are sponsoring legislation whose main purpose is to protect certain players in the crypto market from the tax filing requirements that came into force after the US chief executive, Joe Biden, will enact a $ 1.2 billion dollar infrastructure package.
Wyden / Lummis Bill
The Wyden / Lummis bill I would be in charge of conducting a review of the definition of active crypto brokers to rule out crypto miners, bookies, wallet providers and blockchain software developers, in such a way that they are not seen in the need to present customer data to the Internal Revenue Services.
It should be noted that, at the beginning of this 2021, the digital industry of the crypto market entered a phase of frenzy when it became known that part of the President Biden’s infrastructure bill added a provision that redefines the broker description for tax purposes, with the goal of adding those dealing with crypto assets.
Although it was made clear that the purpose of the bill was to pay several billions of dollars in expenses, in order to ensure that citizens made the payment of their corresponding taxes on the profits obtained from the marketing of crypto currencies, Both trading groups and crypto lobbyists indicated that such legislation, if a clearer and expanded reading of its objectives is made, could put the crypto ecosystem on the ice.
Project reviews
The Bill placed a large number of players in the category of active crypto brokers, not just exchanges. Now, if an exchange house generally reports large transactions to the government, following the rules against money laundering and terrorist financing, crypto miners do not have personal information about their users to whom they carry out all their transactions.
In addition, both wallet providers and software developers have pointed out that they should not be responsible for reviewing, monitoring and tracking the money that travels through their various tools.
Therefore, the revisions have served so that the current language returns to really add in its definition of broker to the actors of crypto assets that are not really in charge of managing funds.
“What is really needed is to promote innovation, not stifle it, especially if we intend for the United States to remain a financially leading global country.”Senator Lummis said through a Press release. “I am proud to expose this bipartisan bill as it will ensure that the tax system reflects the realities of crypto assets and distributed ledger technology.“.
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