Zachary Kelman, Cointelegraph’s general counsel, said that the political struggle over the tax implications for cryptocurrencies in the infrastructure bill is nothing new, as it is likely about how lawmakers plan to pay for everything.
In an interview with Cointelegraph’s Jackson DuMont, Kelman claimed that senators are pushing crypto language in the infrastructure bill, which ultimately passed the House of Representatives After a senator opposed a clarifying amendment, he may have been influenced more by political concerns than those that could affect the crypto space. Namely, the attorney general claimed that lawmakers know that crypto companies “can’t really agree to” the proposed tax filing requirements, but needed the language to essentially win over senators concerned about paying the bill.
According to Kelman, Republicans and moderate Democrats can support the bill, but they want the language to have a provision to fund some of the proposed major roads, bridges, and infrastructure projects without having to raise taxes:
“This rule, along with many other rules, is about enforcement. It’s about … without having to say we’re going to increase the capitalization rate, we’re going to increase corporate tax rates, which sends a bad signal to the market, ”Kelman said. “They’re saying, this money is out there in the land of cryptocurrencies […] and that we are going to find new ways to capture that tax revenue. “
“It’s a shell game to show them, ‘Look, we’re going to be able to pay for this.’
The infrastructure bill, HR 3684, was approved by the Senate in a 69-30 vote on August 10. In particular, despite the lack of a amendment clarifying crypto language In the bill, four of the senators pushing for such clarification – Rob Portman, Mark Warner, Kyrsten Sinema and Ron Wyden – voted in favor of the deal, and only Pat Toomey and Cynthia Lummis voted against. The bill will now go to the House of Representatives, where it probably won’t go to a vote until later this year.
Watch the full interview with Zachary Kelman on Cointelegraph’s YouTube channel here.