Cryptocurrency became red-hot in the Senate after industry lobbyists were blindsided by part of the measure that would treat crypto more like stocks.
Leading the charge in the Houseare California Democrats in the orbit of Silicon Valley, including Rep. Anna Eshoo. | Greg Nash-Pool/Getty Images
Crypto-friendly House Democrats are plotting a long-shot bid to scale back digital currency tax rules tucked into President Joe Biden’s infrastructure plan, threatening to prolong a lobbying battle that snarled the legislation in the Senate.
At issue in the fight are proposed requirements that would force cryptocurrency exchanges and other firms to report transaction information to the Internal Revenue Service, similar to rules in place for stock brokers. As drafted, industry lobbyists and sympathetic lawmakers say the plan threatens technological innovation and the viability of a growing sector of the U.S. economy.
Leading the charge in the Houseare California Democrats in the orbit of Silicon Valley, including Reps. Ro Khanna, Eric Swalwell and Anna Eshoo. They’re being joined in the fight by cryptocurrency enthusiasts such as Reps. Bill Foster (D-Ill.) and Darren Soto (D-Fla.), who have already started rallying support to amend the infrastructure bill.
The small but growing coalition, which also includes Republicans, is giving hope to lobbyists who failed to pare back the proposal in the Senate after going toe-to-toe with the legislation’s original negotiators and the White House.
“Members are starting to pay attention,” Soto said in an interview. “There is growing bipartisan support to make sure this language is right.” https://www.politico.com/news/2021/08/13/crypto-house-democrats-tax-fight-504341