The cryptocurrency community is currently rallying against an amendment to the United States infrastructure plan that would eventually maintain stringent reporting needs for the developers and validators while simultaneously exempting the miners.
For now, the crypto community seems to be pushing back against various amendments proposed to the crypto provisions of the White House’s infrastructure plan. This government plan aims to raise $28 billion for infrastructure funding via expanded taxation on cryptocurrency transactions and impose some new reporting needs for the crypto ‘brokers.’
Senators Rob Portman and Mark Warner proposed a “last-minute amendment” on August 6 to the infrastructure deal aiming to exclude the hardware and software wallets sellers and proof-of-mining from the bill. Nonetheless, the amendment’s wording seems to indicate that the proof-of-stake validators and crypto developers would still be targeted by expanded reporting and taxation that some of them have described as ‘unworkable.’
Several hours later, Jeff Stein, a Washington Post economics reporter, tweeted that the White House is officially supporting their amendment.
Late breaking – White House is coming out formally in support of Warner-Portman-Sinema crypto amendment, implicitly against the Toomey-Wyden-Lummis plan
— Jeff Stein (@JStein_WaPo) August 6, 2021
If the report is accurate, it means that the White House is not supporting a rival amendment that was proposed by Senators Pat Toomey, Cynthia Lummis, and Ron Wyden that offered a wider list of exemptions including:
“for any entity validating distributed ledger transactions, entities developing digital assets or their corresponding protocols, as well as miners.”
“By clarifying the definition of a broker, our amendment will ensure non-financial intermediaries like miners, network validators and other service providers are not subject to the reporting requirements specified in the bipartisan infrastructure package.”
Jerry Brito, Coin Center executive director, slammed Warner and Portman’s overly limited amendment terming it as disastrous, and accused Congress of picking winners and losers.
Wow. Sen. Warner and Portman are proposing a last minute amendment competing with the Wyden-Lummis-Toomey amendment. It is a disastrous. It only excludes proof-of-work mining. And it does nothing for software devs. Ridiculous!
Here is all it excludes: pic.twitter.com/FA7K6NU2s0
— Jerry Brito (@jerrybrito) August 5, 2021
The small amendment has received massive condemnation from the general crypto community, with most onlookers insisting that proof-of-stake networks and software developers will be intertwined and caught by the new legislation.
At the moment, there is a petition demanding citizens to push back against the amendment live on FightForTheFuture.org. The petition page is slamming the law for “dramatically expand[ing] financial surveillance” and harming nascent innovation.
The Electronic Frontier Foundation (EFF) unveiled an article on August 2 criticizing the amendment for including developers who have no control over digital assets on behalf of the users in its scope.
Particularly, the EFF aimed at the wording contained in the amendment that defines a crypto ‘broker’ as any person who is responsible for and often providing services effectuating the transfer of digital assets, alleging that nearly all entities within the crypto ecosystem might be considered to be a ‘broker.’ EFF added:
“The mandate to collect names, addresses, and transactions of customers means almost every company even tangentially related to cryptocurrency may suddenly be forced to surveil their users.”