A bipartisan group of senators is introducing legislation to tighten some cryptocurrency tax reporting restrictions that were included in the infrastructure bill that is expected to be signed into law on Monday.

The new draught, whose copy was obtained by a major newswire, aims to override a section in the infrastructure law that cryptocurrency investors believe is overly broad and will hinder the rise of digital currencies.

The legislation would address new tax reporting requirements for digital currencies included in the $550 billion infrastructure bill that President Joe Biden is expected to sign into law on Monday. In an effort to enforce tax compliance, the new law will require some cryptocurrency companies that provide a service "effectuating" the transfer of digital assets to report information on their users, as some other financial firms are required to do.

The standalone bill is the result of several attempts to address concerns raised by the cryptocurrency industry during Senate infrastructure negotiations. Advocates are concerned that the language in the public-works bill would require entities such as miners and software developers to report tax data to the IRS that they would not be able to access.

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It's unclear when or if the crypto reporting bill will be put to a vote, or if it will be included in other year-end legislative packages in the coming weeks. The bill includes a provision that would make it retroactive to the signing of the infrastructure bill.

The cryptocurrency rules were inserted into the infrastructure bill to help offset some of the $550 billion in new spending. The joint committee on taxation, Congress' official tax scorekeeper, estimates that they would raise approximately $28 billion over a decade.

The effort to amend the infrastructure bill, as well as more recent attempts to change the legislation retroactively, were the result of cryptocurrency advocates and businesses banding together this summer after-tax requirements were inserted into the public-works package. Square CEO Jack Dorsey and Coinbase Global CEO Brian Armstrong have both expressed support for changing the language in the infrastructure plan.