Crypto: Senate Infrastructure Bill Targets Cryptocurrencies

 

Coindesk is reporting that the infrastructure bill pending in the US Senate has language that would redefine cryptocurrency brokers.

The language seems to expand the definition from large exchanges like Coinbase, Kraken, and Gemini, to include software and hardware wallet developers, multisig service providers, and possibly even crypto miners. This could impact anyone running a Bitcoin Lightning node since Lightning channels require multisig. Basically, if you open a Bitcoin Lightning channel, does that mean you’re a “multisig service provider”?

Bitcoin’s Lightning Network enables commerce for everyone by facilitating instantaneous transactions, so small businesses that take Bitcoin Lightning payments could be facing another tax and reporting hit from DC.

The bottom line is that legislators need to engage industry stakeholders to help craft better legislation or, better yet, leave the tax increases and onerous regulation out altogether.