The United States government is attempting to shoehorn unfair and sloppily written language which could harm the cryptocurrency and decentralized finance communities for decades to come. This is our opportunity to speak out against these potential regulations and ask to have a seat at the table.

THE PROBLEM

H.R. 3684: INVEST in America Act, “U.S. Infrastructure Bill”
Sec. 80603. Information reporting for brokers and digital assets
(2) Furnishing of information
(ii) (d) Return requirement for certain transfers of digital assets not otherwise subject to reporting

Any broker, with respect to any transfer (which is not part of a sale or exchange executed by such broker) during a calendar year of a covered security which is a digital asset from an account maintained by such broker to an account which is not maintained by, or an address not associated with, a person that such broker knows or has reason to know is also a broker, shall make a return for such calendar year, in such form as determined by the Secretary, showing the information otherwise required to be furnished with respect to transfers subject to subsection (a).

WHY THIS IS A PROBLEM

• Language defining “broker” is too broad
• Could encompass crypto miners, validators, developers, and decentralized exchanges who are unable to comply with reporting    requirements

• Could encompass other entities who do not act as brokers, nor provide/hold/require customer information
• Would stifle crypto developments and innovations in the U.S.
• Would send innovation to competitors overseas

WHAT WE CAN DO TO PREVENT THIS FROM OCCURRING

EDUCATE legislators/staffs on the basics of blockchain, DeFi, and the detriments this particular language will cause

LOBBY legislators/staffs to either a) eliminate the amendment language in its entirety; or b) influence the writing of the language to exclude miners, validators, developers, decentralized exchanges, decentralized products/assets, and any other applicable entities we wish to protect

REINFORCE cryptocurrency protections by creating groundswell of public support, media attention, and carefully crafted relationships with like-minded legislators/lobbyists