Bitcoin cryptocurrency digital currency Photo illustration by Edward Smith/Getty ImagesA compromise crypto-tax amendment to $1 trillion infrastructure bill was rejected by the US Senate.On Monday, it failed to pass one vote. A lawmaker wanted $50 billion more in military spending.The senators had debated how broad the crypto tax rules should be applied, but reached a compromise.Subscribe to our daily newsletter 10 Things Before The Opening Bell.A crypto-tax amendment to $1 trillion infrastructure bill was rejected by the US Senate. It was put together as an 11-hour compromise between legislators who were arguing over whether crypto brokers should be subjected to new tax reporting rules.Late Monday's vote failed to approve the compromise amendment. It needed unanimous approval in order to be included in the bipartisan bill. Alabama Senator Richard Shelby opposed it. He had attempted to attach his unrelated amendment to the bill for a $50 billion increase to military spending but was rejected.The crypto amendment was presented by Senator Pat Toomey from Pennsylvania, which was also co-sponsored the Sens. Mark Warner of Virginia; Kyrsten Sinema from Arizona; Rob Portman, Ohio; and Cynthia Lummis, Wyoming.There were a variety of opinions among lawmakers about the definition of "broker" in infrastructure bill. This argument was essentially about which companies would be subject to the new tax reporting rules for cryptocurrency.This definition determines who is required to report cryptocurrency gains to Internal Revenue Service under new regulations and what the threshold for these gains should be. Expect the tax proceeds to finance up to 28 billion worth of infrastructure investment.Sens. Warner, Portman, and Sinema wanted software developers and validators to be included in the definition. Sens. Sens.Treasury Secretary Yellen supported the compromise text. It does not include software developers or validators.Crypto advocates strongly reacted to the defeat of the amendment. They had already expressed concerns that a broad scope would harm their industry and prevent it from growing."I believe it's time to organize a rally in Washington DC. I will make some phone calls. "More on this later," Charles Hoskinson (founder of Cardano cryptocurrency) tweeted.Others took it a step further with Mike Novogratz, crypto heavyweight, stating that Congress should pass a bill that excludes anyone over 80.He said that the world is changing so fast that it was impossible to have 70-80 year-olds make all the major decisions.If senators are not able to present another vote on the compromise amend, the bill will be voted with the original, more expansive definition of crypto broker.
