Cryptocurrency traders deadlocked over tax reporting rules
The White House was calling on Democrats to try to block a vote on the Wyden-led amendment earlier Thursday because the Treasury Department wanted the ability to require tax forms from the creators of peer-to-peer exchanges, according to an aide in the GOP. The White House then publicly supported the Warner-Sinema-Portman Amendment.
“The administration believes that this provision will strengthen tax compliance in this emerging area of finance and ensure that high income taxpayers contribute what they owe under the law,” Deputy Press Secretary Andrew Bates said in a statement. “We are grateful to President Wyden for his leadership in pushing the Senate to address this issue, but we believe that the alternative amendment proposed by Senators Warner, Portman and Sinema strikes the right balance and takes an important step forward in promoting tax compliance. . “
Portman, who was behind the bill’s underlying reporting provision, tweeted that he would support a vote on the Wyden-led amendment earlier on Thursday, before coming up with his own version. He had previously said the text was not meant to apply to groups that senators wanted exempted.
The Warner-Sinema-Portman Amendment would clarify that reporting obligations do not apply to proof of work minors and vendors of hardware or software to control private keys that access a user’s cryptocurrency, called wallets. Proof-of-work mining is the most traditional form of transaction validation on a blockchain, where miners solve complex mathematical problems using powerful computers – a process that has been criticized for being wasted electricity. .
The competing amendment would provide “a safe haven for the most climate-damaging form of crypto technology called proof of work,” Wyden tweeted Thursday evening. “It would be a mistake for the climate and for innovation to push this amendment forward.”