Pat Toomey, Senator and ranking member on the Senate Banking Committee, is still fighting for the infrastructure bill. Recently, he pledged to correct the flawed language in the legislation that sparked major controversy back in August. He also criticized the new stablecoin report that recommends regulation of their issuers, like banks.
Correction of language on “Crypto Brokers”.
In an interview with Yahoo Finance, the senator shared his thoughts. He spoke with Jennifer Schonberger and stated that he wants to “absolutely fix” the language in the Infrastructure Bill’s legislation regarding cryptocurrency brokers.
Toomey and other members of the crypto community have been protesting this legislation for many months. The bill, which totals $550 billion, is a massive investment package that will be used to build roads and bridges, broadband, energy systems, and other infrastructures. It would also implement tax reporting requirements for cryptocurrency brokers to raise some of the required money.
However, “brokers” can be defined as “anyone who makes digital asset transfers.” This could include anyone, from developers to miners to validators to developers.
Toomey stated that the reporting requirements are too difficult and impossible to follow.
“The language is severely flawed. It could impose reporting obligations on participants who are unable to comply [them], since they don’t possess the information [they] would require. It is completely unreasonable
Toomey and the other senators have previously negotiated an amendment. It was agreed by all parties, including the administration. However, the bill never passed due to Toomey’s “procedural problem”.
The bill is currently stuck in congress. The senator stated that if the bill passes, there will be an opportunity for it to be fixed in future legislation.
Pat Toomey. Source: Time Magazine
Toomey’s Defense for The Crypto Industry
Toomey is well-known for his support of the cryptocurrency industry during regulatory debates. The senator also criticised the US stablecoin report recently revealed by Gary Gensler.
According to the document, stablecoin issuers should be “insured” by depository institutions or treated as banks. This is to prevent an “insurable bank run” by issuers who recklessly manage funds backing their tokens. Toomey is concerned that this could hinder innovation and competition in the stablecoin market.
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