A last-minute lobbying push by the cryptocurrency industry to change language in the bipartisan infrastructure bill that was finalized over the weekend succeeded in scaling back some of the scrutiny that participants in the sector will face from the I.R.S. The final legislative text included some changes to alleviate concerns of the cryptocurrency industry, which expressed alarm last week about new requirements that would define most of the participants in the sector as brokers and force them to turn over information to the I.R.S. The provision was projected to raise $28 billion over a decade. After receiving pushback from cryptocurrency lobbyists, lawmakers revised that section of the bill to “clarify” the definition of a broker rather than expand upon it. The legislation also removed language that explicitly targeted “any decentralized exchange or peer-to-peer marketplace.” It replaced that with a broader definition that characterizes brokers as anyone “responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”

Source: New York Times August 02, 2021 14:37 UTC