Rep. Anna Eshoo urged Nancy Pelosi to change the crypto tax language in the infrastructure package.

Spotlight:

  • Rep. Anna Eshoo requested Nancy Pelosi to modify the infrastructure bill’s encryption wording.
  • The measure, which addresses crypto tax reporting requirements, is now being debated in the House of Representatives.
  • Eshoo’s letter has been converted to a non-binding statement, emphasising the crypto community’s objection to the proposed laws’ breadth.

In a letter dated Thursday, Rep. Anna Eshoo requested House Speaker Nancy Pelosi to modify the cryptocurrency-tax wording in the $1 trillion infrastructure plan.

On Tuesday, the Senate passed the measure, but without a consensus proposal that would have limited the definition of “broker” in determining which firms must disclose cryptocurrency profits.

By expanding the term, the measure, according to Eshoo, imposes additional tax reporting requirements on the crypto sector. Due to the decentralized structure of crypto, miners, wallet developers, and validators would be unable to meet the criteria since they would not know who the buyers and sellers were, she noted.

“When the House takes up the Senate bill, I encourage you to amend the problematic broker definition in section 80603 of the legislation,” Eshoo wrote in her letter, which she published on Twitter this week.

Pelosi has stated that the House of Representatives would not debate the bill until the Senate has adopted a Democrat-backed $3.5 trillion budget package, which is expected to happen this autumn.

“I share the goals of the underlying provision to address tax evasion in the cryptocurrency market, but the House should amend it, as the bipartisan compromise amendment would have, to meet this goal without stifling innovation in a nascent industry by imposing unworkable regulations,” Eshoo stated.