There’s been a tremendous amount of confusion – and in some cases, false information – surrounding a set of important tax compliance provisions in the bipartisan infrastructure package.

Let’s clear up a few things.
First, we need to acknowledge that the innovation and excitement surrounding digital assets has at times obscured some real problems – perhaps none greater than the tax evasion and non-compliance we have continued to see.…
The tax gap is especially pronounced in two areas:

1) Cryptocurrency exchanges (some of which openly advertise non-compliance) and custodial wallets, and

2) Businesses that receive cryptocurrency as payment but don’t report it.
First, we’re seeing decentralized exchanges openly advertise their non-compliance w/ regulatory and tax rules – that’s something that we seek to address in this legislation by making clear that, notwithstanding their claims, they’re still subject to compliance.
As we saw on a different front last week, these decentralized exchanges seek to openly flout the established governance regime the US has sought to maintain.…
Second, it’s well-understood that if you pay for something in more than $10,000 cash, there’s a reporting requirement. The bill made clear that this applies to crypto, too, as Treasury had proposed. Even @BlockchainAssn claimed this was common sense…
A bipartisan group of Senators rose to this challenge – clarifying Treasury authority (and ratifying Treasury proposals that have been public since this spring) – in the context of a vitally important and long overdue infrastructure package.
For over a week, the Administration has reiterated to all Senators involved that the scope of these rules would not extend to parts of the crypto ecosystem where entities wouldn’t in their normal course of business be able to collect the relevant information for tax reporting.
They’ve made clear the scope of these provisions is limited – and said repeatedly to Senators that it would not capture miners in proof of work contexts, nor validators in proof of stake contexts. Nor would it capture devs simply contributing code to cryptocurrency projects.
To be fair, obscure provisions of tax law aren’t something most Americans have a passing familiarity with. And in an area as complex and fast-moving as digital assets – it benefits all of us to be clear and get things right.
My colleagues' amendment to the underlying bill would – in the eyes of @FACTcoalition – actually take a step *backwards* in key respects, including (in @FACTcoalition's eyes) undermining the bipartisan AML law Congress enacted law year.…
As @FACTcoalition has emphasized, that clarification from my colleagues was not necessary – and would have hastily and over-broadly carved out DeFi exchanges and custodians, even when they *are* in a position to collect this compliance information.…
While the Admin had been clear that they would not seek to collect or require information from any entities who could not collect or possess it, we realized that there was clearly a lot of confusion and consternation out there.
Thus, in good faith, I and others worked with Treasury to craft a compromise amendment that sought to dispel those concerns – including making clear to folks expressing concern that miners would not be covered.
Some have misinterpreted previous language I had offered to favor proof of work cryptocurrencies – the intent was anything but: to reiterate, all the drafters have repeatedly emphasized they do *not* see validators under any consensus mechanism as subject to compliance.
Our amendment *only* mentioned proof of work explicitly because that seemed to be the greatest alarm – based on mischaracterizations and misinterpretations – of the underlying text. @robportman and I revised our amendment to make clear that both miners and stakers aren't covered.
Ultimately the exact wording describing those validating distributed ledger transactions doesn’t even matter because – again – the Administration & the drafters have made clear to all Senators that validators aren’t covered by the rules under any conceivable consensus mechanism.
Following robust conversations, I’m pleased to have worked in good faith with my colleagues @SenToomey, @senrobportman , @SenLummis, and @SenatorSinema to reach a compromise amendment that would have memorialized and clarified all of this.
While that amendment did not pass due to objections, I look forward to continuing to work with my colleagues on this important issue.
As a former venture capitalist and someone who’s enthusiastic about innovation, I want to maintain America’s lead in financial innovation, including distributed ledger technologies.
But we don’t want to create opportunities for bad actors to evade the sensible and important set of governance rules that we’ve established to ensure that financial networks aren’t enabling illicit activity.
Our nation’s geopolitical influence – our ability to ensure compliance with AML rules, to combat illicit finance and terrorist financing, is predicated on our nation’s central role in global financial infrastructure.
And it rests on our ability to ensure that entities that come into contact w/ that financial infrastructure comply w/ the governance regime we’ve established. We must be clear that innovation/decentralization is not a license to evade the core governance regime the US maintains.

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More from @MarkWarner

10 Aug
I’m glad that the Senate worked together in a bipartisan way to pass the Infrastructure Investment & Jobs Act. This bill will allow Virginia to make significant investments in infrastructure projects across the Commonwealth, including in HR, Richmond, NoVA, Roanoke and Southwest.
Hampton Roads:

- This bill will put $47B towards resiliency to help fund projects like flood mitigation and coastal resiliency. In Hampton Roads, we could use this funding for projects such as: Image

- Last month I visited the Mayo Bridge, one of the 700 bridges across Virginia that are in an alarming state of decay. With $110 billion in funding for roads and bridges, we'll have federal dollars to put towards needed upgrades for bridges all across Virginia. Image
Read 6 tweets
5 Aug
There's a lot in the bipartisan Infrastructure Investment and Jobs Act to make up for decades of underinvestment in our infrastructure, which has disproportionally impacted communities of color.

Here's how:
This bill would invest in critical infrastructure like elevated buildings, roads, and bridges to safeguard black and brown communities in areas vulnerable to flooding and climate change-related extreme weather events. Image
Communities of color are more likely to be burdened by pollution. For example, more than 1-in-3 Latinos in the U.S. live in counties where the air doesn’t meet @EPA public health standards for smog.

This bill has the largest investment in clean energy transmission in history. Image
Read 5 tweets
1 Mar
This #WomensHistoryMonth, I will be honoring some notable women and their contributions, which have helped shape America’s culture and history.

Join me in lifting up their stories.
Born in Virginia, Virginia Minor was the co-founder and the first president of the Woman's Suffrage Association of Missouri. She was the plaintiff in the SCOTUS case, Minor v. Happersett, where the Court held that the Constitution did not grant women the right to vote. Image
Marguerite Higgins was a reporter & war correspondent for the N.Y. Herald Tribune during WWII, the Korean War, and the Vietnam War. She advanced the cause of equal opportunity for female war correspondents & was the first woman awarded a Pulitzer Prize for Foreign Correspondence. Image
Read 4 tweets
9 Feb
This #BlackHistoryMonth, I will be honoring some notable Black Americans and their contributions, which have helped shape Virginia's culture and history.

Join me in lifting up their stories.
After being denied entry because of segregation laws, Gregory Hayes Swanson led a legal fight to integrate @UVA’s law school. He succeeded, becoming the first black legal student at UVA in 1950. Image
After decades of civil rights activism that led to confrontations with the KKK and 13 arrests, Rev. Curtis W. Harris broke barriers in 1998 when he became Hopewell’s first black mayor. He was also a former Baptist minister and native of Surry County. #BlackHistoryMonth Image
Read 4 tweets
9 Feb
CEOs repeat the adage, "our best asset is our people." To put this into practice in the 21st century, we must realign our incentives to encourage inclusive economic growth.

Here's the 2nd part of my 3-part series on the future of American capitalism:…
The proposals surround 7 pillars:

1. Boosting Investment in Workers
2. Facilitating Lifelong Learning
3. Investing in Community Colleges
4. Promoting Skilled Workers
5. Funding R&D
6. Improving Human Capital Disclosure
7. Reforming the TAA Program
America’s past economic success was closely tied to our ability to prepare workers for success over their lives and through multiple sectors. Unfortunately, over the past several decades, we have seen a shift in business norms that threatens to leave workers behind.
Read 4 tweets
5 Feb
The SAFE TECH Act doesn’t interfere with free speech – it’s about allowing these platforms to finally be held accountable for harmful, often criminal behavior enabled by their platforms to which they have turned a blind eye for too long. (1/8)…
For years, Section 230 provided a ‘Get Out of Jail Free’ card to platform companies as their sites are openly and repeatedly used by bad actors to cause damage and injury. Section 230 will be brought into the present-day with the SAFE TECH Act creating targeted exceptions. (2/8)
We’ve seen over and over again that online advertising is a key vector for all manner of frauds and scams, in many cases targeting the most vulnerable users such as seniors. (3/8)…
Read 8 tweets

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