Senators Lummis, Wyden, Toomey propose amendment to infrastructure bill excluding crypto developers, miners, node operators, others from the “broker” definition
A trio of U.S. senators is proposing a legislative exclusion for crypto companies, including miners and software developers …
The BlockMichael McSweeney
Context & Ripple Effects
The Lummis-Wyden-Toomey proposal established a broad carve-out for participants that do not fit a conventional intermediary role. It became the benchmark against which the later miner-only Warner-Portman alternative was judged.
The dispute did not end in the Senate: the chamber later sent the infrastructure bill to the House with the contested crypto reporting language still included. That outcome made the scope of “broker” a live boundary-setting issue rather than a drafting detail.
First-order effects
Crypto developers, miners and node operators gain a Senate-backed case for exclusion from reporting obligations tied to the bill’s broker definition, though the amendment itself does not change the law.
Wyden and Toomey are positioned against the narrower Warner-Portman approach, which would protect miners while leaving other technical participants exposed.
Second-order effects
The White House-backed narrow amendment pressures crypto advocates to argue why software and network operators, not just miners, cannot practicably perform broker-style reporting.
A later bipartisan compromise on cryptocurrency reporting shows the issue shifting from whether to impose reporting rules to which crypto roles Congress can reasonably include.
Third-order effects
The episode points toward crypto regulation being organized around operational function—who intermediates transactions and can report them—rather than treating the sector as a single regulated category.
Repeated legislative efforts to narrow tax treatment, including the later small-transaction tax exemption bill, suggest crypto policy will continue to be negotiated through targeted exemptions as broad rules encounter implementation limits.
The trend: U.S. crypto policy is moving toward role-specific compliance rules as lawmakers test where conventional financial-reporting obligations break down for decentralized networks.
Joint statement in support of the @RonWyden @CynthiaMLummis @SenToomey amendment that explicitly excludes validators, hardware and software wallet makers, and protocol devs from the expanded definition of a broker. https://twitter.com/...
🚨 #Cryptocurency Red Alert 🚨 There is a #Crypto provision hidden in a must-pass bill that will allow mass-surveillance of the crypto-economy. Luckily, an amendment has been introduced that addresses these issues. Tell your Senator to support it ASAP at https://fftf.link/... https…
We @a16z (@bhorowitz, @pmarca, myself & @cdixon) just sent a letter to @SenSchumer and @LeaderMcConnell in support of the bipartisan Wyden-Lummis-Toomey Amendment to the Infrastructure Bill https://a16z.com/... https://twitter.com/...
1/ If you've been following threads on the Infrastructure bill, you know that there is a hastily conceived provision related to digital assets. This provision could have a profound negative impact on crypto in the US and unintentionally push more innovation offshore.
10/ We also need to ask all senators to remove the language requiring sweeping surveillance of crypto holders. You can use this tool to contact your senators. Thank you! https://www.fightforthefuture.org/ ...
3/ But the bill defines “brokers” to include anyone who “effectuates transfers of digital assets.” This means almost anyone in the crypto ecosystem (miners, validators, smart contracts, open source developers etc) could be treated as a “broker” with massive reporting obligations.
Industry/crypto policy wonks happy with Wyden/Toomey/Lummis tweak to infrastructure bill that narrows the current definition of a broker in the bill. Pushback has been that the pay for would be unworkable for crypto developers/miners who aren't involved in asset trades. https://t…
We join concerned Americans and industry allies in thanking @RonWyden, @SenLummis, and @SenToomey for their bipartisan amendment to the infrastructure bill currently before the U.S. Senate. https://twitter.com/...
let's try this again. no one is complaining about paying crypto taxes. no one is complaining about a broker like coinbase being treated like a broker. what we don't want is a miner/staker to be treated like a broker. because they aren't brokers by any stretch of the imagination
4/ This makes no sense. Smart contracts, for instance, are not companies, and cannot be modified to collect KYC info or issue 1099s. They are simply software running on the blockchain that anyone can use.
5/ Fortunately senators @RonWyden, @SenToomey, @SenLummis have an amendment that narrows the definition to intermediaries like @coinbase, who actually have the capacity to report, just like in the traditional financial system. (Link: https://www.finance.senate.gov/ ...)