Finally, a truce entered between the US Treasury Department and a few of the lawmakers that were working with the Treasury Department in providing for crypto infrastructure through a legislation bill proposal. The truce follows with an announcement by the Senators working on the draft bill that they wanted to ensure that the law will not be applicable upon those crypto businesses that are operating such as brokers.
US Treasury Department has been receiving assistance from five lawmakers over-drafting of infrastructure for crypto through a legislation bill proposal. However, there was an apparent deadlock over certain issues concerning the 1.2 Trillion Dollar crypto market. The draft bill proposal was aiming to incorporate reporting requirements with regard to virtual assets. This very aspect of the proposed law is the bone of contention between the Senators and the officials of the US Treasury Department. However, the issue has been laid to rest through a compromise agreement settled between the disputing parties.
The Senators who were assisting the Treasury were Mark Warner, Rob Portman, Pat Toomey, Kyrsten Sinema, and Cynthia Lummis.
It was official announced by the Banking, Housing & Urban Affairs Committee of the Senate that the deadlock has been settled through mutual consent. The announcement reveals that each author of the proposed bill did perform their defined roles professionally and efficiently. According to the compromise, US Treasury Department has agreed that the law would not be applicable upon those crypto businesses that are operating such as “brokers”.
Later on, Senator Toomey commented that he still personally believes that this is not the ultimate solution they wanted. However, it is better than what has initially been proposed in the draft bill anyway. He clarified that the law would exclude validators of crypto transactions, any non-brokers, software developers as well as node operators.
Senator Toomey further emphasized that under the proposed law “brokers” means such as crypto exchanges and trading platforms. He elaborated further that the law would be applicable on such platforms which host crypto trading, buying, and selling services.
Jerry Brito, who is the ED at Coin Center commented that the proposed legislation is strict in its nature. He however agreed that the definition of “broker” has been confined to crypto trading and exchanges venues only.
However, the proposed legislation is still in the “bill” format meaning that it would be subject to decision through Senate majority vote. In case the law is passed by the majority, then it would be immediately implemented upon crypto trading and exchange platforms. It could also provide for a certain deadline for the implementation of the law, as the case may be.
The very fact of the consensus was also greatly appreciated by the US tax authorities as well as by CFTC and SEC.