Crypto Tax Plan in Limbo; Circle Wants to Become a Bank

The bipartisan infrastructure bill has thrust the cryptocurrency industry into the national spotlight. And until Monday afternoon, it looked like the industry was headed for a major victory.

Earlier Monday, a group of five senators from both political parties said they had worked with the U.S. Treasury Department to clarify language in the bill surrounding which businesses the new crypto tax-reporting requirements would affect. Under an amendment proposed by the senators including Senator Pat Toomey (R-Pa.), only businesses that conduct transactions where consumers buy, sell and trade digital assets would face the tax-reporting requirements. Software developers, transaction validators and node operators, or firms that operate a network of computers that keep a record of the blockchain, would be exempt.