House Moves to Consider Unamended Infrastructure Bill

Coindesk
08/24/2021

Stephen Palley was quoted August 24 in a Coindesk article.

According to Hinkes, the most likely outcome for the infrastructure bill is for it to clear the House with no amendments and be signed into law by Biden.

Stephen Palley, a crypto lawyer and partner at Anderson Kill, agrees with Hinkes’ assessment.

“It seems unlikely that the bill’s progress will be delayed over only the crypto-tax reporting language, particularly where Treasury will be issuing clarifying guidance that says they do not intend to apply [the provision] to miners, developers, etc,” Palley told CoinDesk.

As Palley points out, the Treasury has reportedly said that it will provide clarifying guidance after the bill is passed to provide exemptions to firms that do not actually operate as brokers. If reports that Treasury Secretary Janet Yellen was lobbying against amendments to the bill are true, it suggests that Treasury’s end goal was to leave the language purposely vague so that Treasury could decide what it means.

Though many critics of the provision consider that to be a worst-case scenario, Palley said he thinks that floor testimony and Treasury guidance will prevent the provision from being interpreted too broadly.

“Assuming the IRS (Internal Revenue Service) honors [Treasury’s guidance], I don’t think the language is as bad as some people have suggested,” he said.

Though there is a chance that the bill dies in the House, Palley thinks it's unlikely.

“If I had to bet I would say no – it’s too politically important for Democrats to get this through. At the end of the day, I suspect that representatives on the left who are complaining it's not enough will be legislatively and presidentially browbeaten into submission,” he said.

Read the full article on Coindesk.

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Blockchain and Virtual Currency Attorney | Anderson Kill P.C.
Stephen D. Palley
Partner
Washington, DC

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