Groups lobbying the bill on behalf of blockchain networks, cryptocurrency investors and other sectors of the industry argued that the definition of a broker in the bill could be interpreted as s ” applying to intermediaries who play a role in transactions but do not take control of digital. assets or collect personal information about their owners. Wyden and Toomey have expressed similar concerns.
‘Here to stay’
Their amendment with Lummis would add text specifying that the reporting obligations would not apply to anyone engaging in the activity of validating cryptocurrency transactions; sell hardware or software to control private keys used to access digital coins, also known as wallets; or develop digital assets for others who are not customers.
“Digital assets are here to stay,” Lummis said in a statement. “While much remains to be done, this amendment is a responsible step towards the full integration of digital assets into the US financial industry. The space of digital assets and financial technology is incredibly complicated, and we have spent long hours working in the Senate, with industry players, and with the administration to find a way to effectively integrate digital assets. in our tax code without harming technology or stifling innovation. . “
Industry groups on Wednesday announced their support for the Senators’ amendment. The Blockchain association; Coinbase cryptocurrency exchange platform; Coin Center, a think tank; the venture capital firm Ribbit Capital; and digital payments company Square Inc., which is building a Bitcoin business, said in a joint statement that they share lawmakers’ concerns about the current language and support the proposed changes.
“Clarifying the provision to address our concerns would not affect reporting requirements on crypto exchanges that operate on behalf of clients,” the groups said. “We support reasonable reporting requirements that are consistent with those that apply to traditional financial services.”