“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,” Wyden wrote on Twitter.
One of the amendment’s sponsors, Sen. Pat Toomey (R-Pa.), said they hope they get an opportunity to put the proposal to a vote, though he stopped short of assuring that. Lawmakers have been snarled in a broader fight over a number of amendments to the spending package, even as it steams closer to passage.
“Our solution makes clear that a broker means only those persons who conduct transactions on exchanges where consumers buy, sell and trade digital assets,” Toomey told reporters.
“It ensures that the bill does not sweep in software developers, crypto transaction validators, node operators or other non-brokers.”
Among those backing the plan: Sens. Rob Portman (R-Ohio), Mark Warner (D-Va.), Kyrsten Sinema (D-Ariz.) and Cynthia Lummis (R-Wyo.). A Treasury spokesperson said the agency was consulted on the changes and does not oppose them.
The reporting requirements are aimed at improving tax compliance among people trading cryptocurrencies by requiring brokers to report to the government how much people pay for the assets as well as their gross proceeds when they sell.
The legislation’s definition of “broker” caused a fracas, with critics complaining it was overly broad. Treasury had balked at changes, arguing the cryptocurrency industry was merely trying to water down the new rules.