Senate passes vote on anti-crypto infrastructure bill

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Key takeaways The Senate passed the infrastructure bill with a majority of 69 to 30 votes. The bill does not contain any amendments to the problematic provisions requiring crypto brokers to follow KYC procedures and follow strict rules on tax reporting. Although the Senate has passed the bill, there is still hope for the crypto industry as the House of Representatives must vote on the bill. Share this article

After much discussion, the $ 1.2 trillion infrastructure bill was approved by the Senate with a 69-30 majority. The bill contains a problematic provision regarding the crypto industry, as any crypto broker will be required to KYC for all of their users.

The Senate regulates all “crypto brokers”

The controversial infrastructure bill was passed by the Senate after a majority vote of 69-30.

One of the key issues with the bill is defining crypto brokers as anyone who facilitates transactions. Legal experts have argued that this definition could be broadened to include proof of work minors, proof of stake validators, and even protocol developers.

The new provisions would require brokers to follow Know Your Customer procedures and adhere to strict tax reporting guidelines. The $ 1.2 trillion bill hopes to raise $ 28 billion through taxes on the cryptocurrency industry.

Two amendments were introduced after the crypto community united in a push against this legislation.

The first amendment proposed by Senators Warner, Sinema and Portman clarified that proof of work minors, computer hardware manufacturers and service providers would be excluded from the broker label.

The community opposed this amendment because it did not protect validators from proof of stake, leading many to believe that the Senate had directly targeted the future upgrade of the Ethereum network to combat the industry. emerging DeFi.

This theory was reinforced by reports that Treasury Secretary Janet Yellen personally pushed for this amendment to pass because DeFi could pose a threat to the current financial system. The White House has also spoken in favor of the Warner-Sinema-Portman Amendment.

Three other Senators, Lummis, Wyden and Toomey proposed a different, more crypto-friendly amendment that found wider support within the crypto community.

We worked hard to make a deal. I don’t think the proposed cryptocurrency amendment language is good enough to protect privacy and security, but it’s definitely better than the underlying bill. Majority Leader Schumer says he won’t block a request for unanimous consent on it

– Ron Wyden (@RonWyden) August 9, 2021

Finally, a joint amendment of all the senators concerned was drawn up. As the amendment was introduced too late, it needed unanimous consensus to pass. Senator Richard Shelby was the only one to block the bipartisan amendment after being defeated his own amendment, a $ 50 billion increase in military spending, to the bill.

No changes to the cryptographic provisions of the Infrastructure Bill have been taken into account. With today’s vote, the bill received Senate approval. Jerry Brito, executive director of crypto lobbying group Coin Center, urged the crypto community not to give up and outlined possible next steps to fight the amendment after the Bill’s amendment was rejected yesterday, starting by the vote of the House of Representatives on the bill.

Disclaimer: The author owned ETH and several cryptocurrencies at the time of writing.

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