U.S. Senator proposes legislation to repeal the Infrastructure Act’s attacks on the crypto industry – Regulate Bitcoin News

U.S. Senator Ted Cruz proposed a bill to abolish the encryption clause in the $1 trillion infrastructure package, which he described as a “destructive attack” on the encryption industry. “I urge my colleagues in the Senate to abolish this harmful language, which will cause regulatory uncertainty and thus unnecessary obstacles to innovation,” he said.

Senator Cruz pushes to repeal the encryption clause of the infrastructure bill

U.S. Senator Ted Cruz said on Tuesday that he has introduced “legislation to repeal the infrastructure bill as a “destructive attack” on the emerging cryptocurrency industry.” Earlier this week, President Joe Biden signed $1 trillion in infrastructure. bill.

Senator Cruz explained that his bill “will repeal the overly broad and poorly designed clause in the infrastructure package, which creates new reporting requirements for many participants in the blockchain industry.” He emphasized:

This regulation will stifle innovation in the industry, endanger the privacy of many Americans and cryptocurrencies, and may push key aspects of the industry to countries such as China.

Senator Cruz described that the Infrastructure Investment and Employment Act “includes a clause that extends the definition of’broker’ to almost all participants in the cryptocurrency structure, treating them as financial institutions.” “They must Report consumer information to the Internal Revenue Service (IRS), even if these participants have no access to the information.”

Cruz warned:

The task of collecting customer names, addresses, and transactions means that almost every company, even those closely related to cryptocurrencies, may suddenly be forced to monitor their users.

The senator from Texas explained that his state “has quickly become a major hub for the cryptocurrency industry, and this exciting industry is now facing being overwhelmed by this newly signed and reckless spending plan. The clause stifles and promotes the danger of going overseas.”

He added: “As a deliberative body, the Senate should complete its work and hold hearings before we risk the livelihoods and privacy of participating Americans to properly understand the consequences of legislation for this emerging industry,” detailing:

I urge colleagues in the Senate to abolish this harmful language, which creates regulatory uncertainty and thus unnecessary obstacles to innovation.

Some lawmakers have worked hard to modify the encryption provisions in the infrastructure bill. For example, Senators Cynthia Lummis and Ron Wyden introduce Legislation this week amended the definition of “broker” in the Infrastructure Investment and Employment Law.

Do you think the encryption provisions of the Infrastructure Act will be repealed? Please let us know in the comments section below.

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