As the bipartisan group of Senators put together the compromise $1T infrastructure deal they slipped in a revenue measure to collect taxes from crypto transactions and focused on increased disclosure. The provision was likely written by Treasury and as the language got full sunlight it became apparent that the definition of crypto broker was too broad and needed to be narrowed.

Late last week there was a flurry of activity with two competing groups working on language to improve the bill’s crypto provision. One group led by Senator Rob Portman was working with Treasury to narrow the scope, but most in the industry felt it was still too broad. Another version was written by a group of Senators led by Pat Toomey that had more input from industry. By Monday the two sides had come together with language that seemed to have broad support and the approval of Treasury. Under the rules in place in the Senate during the infrastructure debate amendments could only be accepted by Unanimous Consent (UC).

When Senator Toomey went to the floor to get a UC on the carefully negotiated crypto language Alabama Senator Richard Shelby was upset that he couldn’t get a UC on an amendment he favored so in retaliation he objected to the crypto deal, even though he later admitted he supported ...

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