There was so much concern and panic about the Bipartisan Infrastructure Bill among the leaders in the cryptocurrency industry.

Pointing to Jake Chervinsky tweet about the U.S. Infrastructure Bill Charles Hoskinson stated:  “Bad laws destroy the economy. Please, people, take this one seriously. It will be terrible for Crypto.”

Denelle Dixon Expressed:  As we’ve said before, new technology deserves new approaches to regulation. That’s why we’re working with industry partners and experts to help clarify language in the proposed Infrastructure Bill, which would impact our industry.

Jerry Brito, in response to the U.S. Infrastructure bill, stated:  The new bipartisan infrastructure bill in the Senate includes new tax reporting obligations for Crypto.

Jake Chervinsky:  What does Crypto have to do with infrastructure, you may ask? The bill has to include “pay-for” provisions to raise revenue for new spending so that it’s revenue-neutral as a whole. The “broker” definition is one of the pay-for provisions in the Senate draft of the bill.

Jack Dorsey Expressed:  Bitcoin is Bitcoin; that is all it needs to be.

The panic in the cryptocurrency industry was very obvious.  However, reportedly, eleventh house lobbying push by the cryptocurrency industry about the need to change the language in the bipartisan infrastructure bill, which was finalized over the weekend, won in the process of scaling back some of the scrutiny which the participants in the sector might have had to face from the I.R.S.

The final legislative text has made some changes to alleviate the concerns of the cryptocurrency industry.  The alarm was because the bill proposed new requirements which would define most of the participants in the sector as brokers to eventually force them to turn over their information to the I.R.S. This provision was projected to raise $28 billion in over a decade.

Lawmakers revised that section of the bill to “clarify” the definition of a broker as opposed to expanding upon it. Also, it removed language which explicitly targeted “any decentralized exchange or peer-to-peer marketplace.” By providing a broader definition that characterizes brokers as anyone who is “responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”

The cryptocurrency industry did not want tougher tax enforcement on miners, or creators, of digital money or the “node operators” who are the key to keeping the software behind the transactions moving.

Lobbyists are continuing to press senators for improved clarity to ensure that several areas of the nascent sector will be excluded from the law.

A lot of clarification is being sought about the law’s intent. However, they are still seeking similar assurances from the Treasury Department that will likely have broad discretion to implement the law if passed and signed by President Biden.