Senate rejects crypto amendment as bipartisan bill proceeds to final vote without further changes

The last attempt at an amendment to the controversial infrastructure bill in the US Senate that would require stricter cryptocurrency tax reporting requirements was dissolved on August 9. The proposed package aimed to raise at least $28 billion in digital asset taxes. Crypto service providers would be required to report users that hold the new asset class. 

A single objection kills crypto amendment

The bipartisan $1.2 trillion infrastructure package has been widely debated this weekend, as it would potentially bring increased tax compliance in the cryptocurrency industry. 

Senator Pat Toomey (R-PA) presented the amendment to allow network operators in the blockchain industry to be exempted from cryptocurrency tax reporting requirements from the Internal Revenue Service (IRS). 

Although the senators behind the amendment were aiming for a broad consensus, the proposal by Toomey was presented for unanimous approval, therefore, a single objection would put an end to the amendment. 

Senator Richard Shelby (R-AL) objected to the amendment and decided to present his own amendment to the infrastructure bill that consists of a $50 billion budget for defense.

Senator Ted Cruz (R-TX) also presented his amendment which would strike the cryptocurrency language from the bill, which required unanimous consent once again. Cruz added that if there were to be objections to this amendment, it would have “devastating effects.” 

Shelby objected with a motion of his defense spending proposal, once again killing the amendment which requires unanimous consent. 

The language surrounding the bill on cryptocurrency tax reporting took the spotlight over the past few days, as a group of bipartisan senators have been promoting competing agreements. 

The senators hoped that the vague language around network operators and miners that categorizes them as “brokers” would be omitted, leaving only crypto exchanges to comply with the stricter cryptocurrency tax requirements.

The infrastructure bill will now be voted on by the Senate and is expected to pass, given its bipartisan nature. Once the package receives its approval, it will be produced by the 435-member House of Representatives before US President Joe Biden signs it into law.