Skip to main content

Senate cryptocurrency tax reporting deal fails

Senate cryptocurrency tax reporting deal fails

/

Sen. Richard Shelby (R-AL) objected to the motion

Share this story

Cynthia Lummis and Pat Toomey
Photo By Tom Williams/CQ-Roll Call, Inc via Getty Images

A bipartisan deal to exempt cryptocurrency developers from certain tax reporting requirements failed in the Senate after a senator rejected a motion to approve the amendment on Monday.

Last week, the Senate released an over $1 trillion bipartisan infrastructure package that included over $550 billion in new spending to strengthen roads, bridges, and other physical infrastructure like high-speed broadband. The bill also sought to institute new tax reporting requirements for cryptocurrency transactions, a provision that would raise an estimated $28 billion to offset some infrastructure costs. 

“We’re not proposing anything sweeping or anything radical”

But the digital assets community and lawmakers like Sen. Ron Wyden (D-OR) argued that the proposed definition of “broker” was too vague and could extend reporting requirements to wallet developers and miners. Over the following days, dueling bipartisan groups of senators worked to remedy the problem, ending in today’s agreement.

The deal announcement comes after the Senate held a series of procedural votes late Sunday to advance the original bill, including the controversial cryptocurrency language. Sens. Pat Toomey (R-PA) and Cynthia Lummis (R-WY) put out the amendment Monday that would clarify the “broker” definition, but the amendment was defeated when Sen. Richard Shelby (R-AL) objected to the motion later this afternoon.

“We came together to provide greater clarity on the rules for who are the actual brokers of a cryptocurrency,” Toomey said at a press conference Monday. “We’re not proposing anything sweeping or anything radical.”

Notably, Wyden was not signed on to Monday’s amendment clarifying the language. A source familiar told The Verge that the senator did not put his name on the amendment because he feared that future administrations could read the proposed language and interpret it as including miners and developers. The amendment text has yet to be released.

“We’ve been working hard to get a deal,” Wyden said in a tweet Monday. “I don’t believe the cryptocurrency amendment language on offer is good enough to protect privacy and security, but it’s certainly better than the underlying bill.”

Update August 9th, 4:59 PM ET: This article and headline have been edited to reflect that the amendment failed on the Senate floor Monday.

Today’s Storystream

Feed refreshed Sep 25 Not just you

E
Twitter
Emma RothSep 25
Rihanna’s headlining the Super Bowl Halftime Show.

Apple Music’s set to sponsor the Halftime Show next February, and it’s starting out strong with a performance from Rihanna. I honestly can’t remember which company sponsored the Halftime Show before Pepsi, so it’ll be nice to see how Apple handles the show for Super Bowl LVII.


E
Twitter
Emma RothSep 25
Starlink is growing.

The Elon Musk-owned satellite internet service, which covers all seven continents including Antarctica, has now made over 1 million user terminals. Musk has big plans for the service, which he hopes to expand to cruise ships, planes, and even school buses.

Musk recently said he’ll sidestep sanctions to activate the service in Iran, where the government put restrictions on communications due to mass protests. He followed through on his promise to bring Starlink to Ukraine at the start of Russia’s invasion, so we’ll have to wait and see if he manages to bring the service to Iran as well.


E
External Link
Emma RothSep 25
We might not get another Apple event this year.

While Apple was initially expected to hold an event to launch its rumored M2-equipped Macs and iPads in October, Bloomberg’s Mark Gurman predicts Apple will announce its new devices in a series of press releases, website updates, and media briefings instead.

I know that it probably takes a lot of work to put these polished events together, but if Apple does pass on it this year, I will kind of miss vibing to the livestream’s music and seeing all the new products get presented.


E
External Link
Emma RothSep 24
California Governor Gavin Newsom vetoes the state’s “BitLicense” law.

The bill, called the Digital Financial Assets Law, would establish a regulatory framework for companies that transact with cryptocurrency in the state, similar to New York’s BitLicense system. In a statement, Newsom says it’s “premature to lock a licensing structure” and that implementing such a program is a “costly undertaking:”

A more flexible approach is needed to ensure regulatory oversight can keep up with rapidly evolving technology and use cases, and is tailored with the proper tools to address trends and mitigate consumer harm.


Welcome to the new Verge

Revolutionizing the media with blog posts

Nilay PatelSep 13
A
Youtube
Andrew WebsterSep 24
Look at this Thing.

At its Tudum event today, Netflix showed off a new clip from the Tim Burton series Wednesday, which focused on a very important character: the sentient hand known as Thing. The full series starts streaming on November 23rd.


A
The Verge
Andrew WebsterSep 24
Get ready for some Netflix news.

At 1PM ET today Netflix is streaming its second annual Tudum event, where you can expect to hear news about and see trailers from its biggest franchises, including The Witcher and Bridgerton. I’ll be covering the event live alongside my colleague Charles Pulliam-Moore, and you can also watch along at the link below. There will be lots of expected names during the stream, but I have my fingers crossed for a new season of Hemlock Grove.


T
Twitter
Tom WarrenSep 23
Has the Windows 11 2022 Update made your gaming PC stutter?

Nvidia GPU owners have been complaining of stuttering and poor frame rates with the latest Windows 11 update, but thankfully there’s a fix. Nvidia has identified an issue with its GeForce Experience overlay and the Windows 11 2022 Update (22H2). A fix is available in beta from Nvidia’s website.