The crypto industry is opposing a last-minute crypto tax amendment attached to the bipartisan infrastructure bill. It's the second revision to a tax-reporting provision that alarmed many in the industry.
The new amendment from Sens. Rob Portman of Ohio, Mark Warner of Virginia and Kyrsten Sinema of Arizona would reportedly leave a broader definition of a "broker" that is required to report crypto transactions to the IRS.
Andreessen Horowitz, a major crypto venture investor, said the the amendment would "stifle innovation" and unfairly target software developers and entities that validate cryptocurrency transactions.
"If the last-minute amendment to the Infrastructure Bill introduced by Senator Warner passes, it will be a stunning loss for America and our ability to remain the innovation epicenter of the world," a spokesperson for the firm said. "The proposed amendment recklessly imposes an unworkable reporting requirement on the shoulders of software developers and proof-of-stake blockchain validators."
The previous amendment from Senators Ron Wyden of Oregon, Pat Toomey of Pennsylvania and Cynthia Lummis of Wyoming would exclude miners from tax reporting requirements. Andreessen Horowitz supported that amendment.
The White House has reportedly backed Portman's amendment.
Climate TRACE's data show emissions at the facility-level.Image: Climate TRACE