{"id":52998,"date":"2021-11-17T10:09:36","date_gmt":"2021-11-17T08:09:36","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=52998"},"modified":"2025-09-03T12:52:40","modified_gmt":"2025-09-03T09:52:40","slug":"us-senator-proposes-removing-crypto-brokers-from-infrastructure-plan","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/us-senator-proposes-removing-crypto-brokers-from-infrastructure-plan\/","title":{"rendered":"US Senator proposes removing crypto brokers from infrastructure plan"},"content":{"rendered":"<p>The Republican Senator from Texas, Ted Cruz, introduced a bill aimed at scrapping a provision in the infrastructure package that seeks to tighten reporting requirements on &#8216;brokers&#8217; in the digital assets sector.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The Lone Star State has quickly emerged as the main hub for the cryptocurrency industry, and that exciting industry is now in danger of being stifled and driven overseas by an overreaching provision in this newly-signed, reckless spending package. 1\/3<a href=\"https:\/\/t.co\/Qu1QR63uFp\">https:\/\/t.co\/Qu1QR63uFp<\/a><\/p>\n<p>\u2014 Senator Ted Cruz (@SenTedCruz) <a href=\"https:\/\/twitter.com\/SenTedCruz\/status\/1460631538937249793?ref_src=twsrc%5Etfw\">November 16, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On November 15, President Joe Biden <a href=\"https:\/\/u1f987.com\/en\/news\/biden-signs-infrastructure-bill-without-cryptocurrency-amendments\">signed a bipartisan bill<\/a> to mobilize $1.2 trillion for infrastructure upgrades, without provisions favorable to the crypto industry.<\/p>\n<p>The document contains an expanded definition of the term &#8216;broker&#8217;. Depending on interpretation, miners and node operators in blockchains, wallet developers, liquidity providers in <span data-descr=\"decentralized finance\" class=\"old_tooltip\">DeFi<\/span>-protocols and other non-custodial actors could be required to report to the <span data-descr=\"Internal Revenue Service\" class=\"old_tooltip\">IRS<\/span> on their users&#8217; activities.<\/p>\n<p>The bill&#8217;s provisions, in this form, are technically unworkable, and the document has repeatedly <a href=\"https:\/\/u1f987.com\/en\/news\/experts-criticise-us-congress-plan-for-expanded-crypto-taxation\">faced criticism<\/a> by crypto industry representatives, including <a href=\"https:\/\/u1f987.com\/en\/news\/elon-musk-joins-criticism-of-the-expanded-us-cryptocurrency-tax-plan\">Elon Musk<\/a> and <a href=\"https:\/\/u1f987.com\/en\/news\/jack-dorsey-joins-criticism-of-us-plan-for-expanded-crypto-taxation\">Jack Dorsey<\/a>.<\/p>\n<p>In Cruz&#8217;s office, the provision was described as a &#8220;devastating attack&#8221; on the cryptocurrency industry. The senator says the requirements hinder innovation, threaten the privacy of American citizens, and drive industry companies overseas.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cBefore risking the funds and privacy of citizens who are participants in the industry, the Senate should have done its job and held hearings to properly understand the consequences of regulating this evolving industry,\u201d the senator stressed.<\/p>\n<\/blockquote>\n<p>During Senate consideration of the bill, Cruz authored one of the numerous amendments. Unlike his colleagues, who proposed removing from the document <a href=\"https:\/\/u1f987.com\/en\/news\/us-lawmakers-propose-amendments-to-bipartisan-plan-for-expanded-cryptocurrency-taxation\">non-custodial participants of the industry<\/a> or at least <a href=\"https:\/\/u1f987.com\/en\/news\/biden-signs-infrastructure-bill-without-cryptocurrency-amendments\">miners and software sellers<\/a>, the politician argued for a complete rejection of such formulations.<\/p>\n<p>Earlier, Senators Ron Wyden and Cynthia Lummis proposed a softer approach to cap certain cryptocurrency tax-reporting rules in the infrastructure package.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We need to be fostering innovation, not stifling it, if we are going to maintain America\u2019s position as the global financial leader. <a href=\"https:\/\/t.co\/px84GKbA4x\">https:\/\/t.co\/px84GKbA4x<\/a><\/p>\n<p>\u2014 Senator Cynthia Lummis (@SenLummis) <a href=\"https:\/\/twitter.com\/SenLummis\/status\/1460351725924147200?ref_src=twsrc%5Etfw\">November 15, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Cruz&#8217;s concern is understandable \u2014 against the backdrop of the mass exodus of miners from China prompted by <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-hash-rate-plunges-amid-chinese-authorities-decisions\">repressive government policies<\/a>, Texas has become one of the largest cryptocurrency hubs in the United States.<\/p>\n<p>In June, publicly traded Argo Blockchain <a href=\"https:\/\/u1f987.com\/en\/news\/argo-blockchain-secures-galaxy-digital-loan-to-build-texas-mining-pool\">received about $20 million<\/a> from crypto bank Galaxy Digital to build a Bitcoin mining pool in Texas. In October, Greenidge Generation <a href=\"https:\/\/u1f987.com\/en\/news\/greenidge-generation-orders-22500-asic-miners-for-deployment-in-texas-and-south-carolina\">ordered 22,500 devices for Bitcoin mining<\/a> Antminer S19j Pro \u2014 most of which will also be deployed at sites in the state.<\/p>\n<p>In early November, Genesis Digital Assets <a href=\"https:\/\/u1f987.com\/en\/news\/genesis-digital-to-build-a-new-300-mw-mining-centre-in-texas\">announced<\/a> the start of construction of a new Bitcoin mining center in western Texas with a capacity of 300 MW.<\/p>\n<p>Earlier, in June the state authorities <a href=\"https:\/\/u1f987.com\/en\/news\/texas-authorities-allow-banks-to-store-cryptocurrencies\">allowed banks to hold cryptocurrencies<\/a>, and in September a law came into force allowing local regulators <a href=\"https:\/\/u1f987.com\/en\/news\/texas-brings-digital-assets-into-its-legal-framework\">to adapt commercial law to blockchain and digital assets<\/a>.<\/p>\n<p>Read ForkLog\u2019s Bitcoin news on our <a href=\"\/\/telegram.me\/forklog\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Republican senator from Texas, Ted Cruz, introduced a bill aimed at scrapping the infrastructure package provision that would tighten reporting requirements on &#8216;brokers&#8217; in the digital asset industry.<\/p>\n","protected":false},"author":1,"featured_media":52999,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[36,558,26],"class_list":["post-52998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-regulation","tag-taxes","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"25","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/52998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=52998"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/52998\/revisions"}],"predecessor-version":[{"id":53000,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/52998\/revisions\/53000"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/52999"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=52998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=52998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=52998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}