Unchained Unconfirmed: How Congress Might Pass Laws Bad for Proof-of-Stake and DeFi - Ep.261
Aug 6, 2021
Kristin Smith, executive director at the Blockchain Association, shares her insights on the latest developments in crypto legislation. She discusses a controversial provision in the infrastructure bill that could impose heavy taxes on the crypto industry. Kristin points out the issues with the expanded definition of 'broker' and the negative impacts of a rival amendment supported by the White House. She emphasizes the potential harm to proof-of-stake networks and DeFi, while urging the crypto community to rally and advocate for clearer regulations.
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IRS Information Reporting
- The IRS has been working with the crypto industry for two years to develop information reporting requirements for exchanges, similar to traditional brokerage firms.
- The current infrastructure bill's crypto provision expands the definition of "broker" beyond exchanges, impacting other players like stakers and miners.
Resistance to Change
- Resistance to changing the bill's crypto provision stems from a deal between Senators Portman and Sinema and the White House.
- This resistance is based more on process than substance, making it difficult to address the industry's concerns.
Wyden Amendment
- The Wyden-Lummis-Toomey amendment clarifies that stakers, miners, and software developers are not brokers, addressing industry concerns about the bill.
- This amendment resulted from negotiations between the senators and industry participants.