Last attempt to salvage tax deal with cryptocurrency underway in Senate

“I do not think the language of cryptocurrency change offered is good enough to protect privacy and security, but it is certainly better than the underlying bill,” Wyden wrote on Twitter.

One of the sponsors of the amendment, Senator Pat Toomey (R-Pa.), Said they hope they will have the opportunity to put the proposal to the vote, even though he stopped securing it. Legislators have been entangled in a broader battle over a number of changes to the spending package, though it is steaming closer to passage.

“Our solution makes it clear that a broker only means those people who trade on exchanges where consumers buy, sell and trade digital assets,” Toomey told reporters.

“It ensures that the bill does not sweep software developers, crypto-transaction validators, node operators or other non-brokers.”

Among those backing the plan: Sens. Rob Portman (R-Ohio), Mark Warner (D-Va.), Kyrsten Sinema (D-Ariz.) And Cynthia Lummis (R-Wyo.). A finance minister said the agency was consulted on the changes and is not against them.

The reporting requirements aim to improve tax compliance among people who trade cryptocurrencies by requiring brokers to report to the government how much people pay for the assets as well as their gross proceeds when they sell.

The legislative definition of “broker” caused a fracas in which critics complained that it was too broad. Treasury had rejected changes, arguing that the cryptocurrency industry was simply trying to dilute the new rules.

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