Brian Armstrong, Coinbase CEO, is the latest crypto influencer to object to changing crypto tax laws in the country. Armstrong tweeted that the terms of the new crypto law could severely hinder the crypto growth in the United States and force mass exodus into other crypto-friendly climes.
Brian Armstrong Also Criticizes Proposed Amendments To Crypto Policies
As widely reported in various media, changes to crypto tax laws were added lately to the $1 trillion infrastructure deal currently being perused by the United States senate. Like others who have faulted the proposal, Armstrong also pointed out that the bill’s structure is too broad, citing the example of the term broker. According to the bill, anyone who eases cryptocurrency transactions is defined as a broker.
Other critics of this bill also said miners, software brokers, and other firms who provide non-brokerage-related services would be mandated to pay brokerage-related taxes. In reference to this broad categorization, Armstrong tweeted, “this isn’t sensible at all.” he further said, “smart contracts aren’t firms; they can’t collect KYC details or 1099s. They are software that runs on the blockchain, and any technical person can use them.”
Armstrong also said legislators need to be reminded that part of their responsibilities is to aid innovations in the country and not hinder them. Armstrong suggested that there should be a reduction in crypto intermediaries, and crypto enthusiasts must start voicing out their support for pro-cryptocurrency legislators like Cynthia Lummis, Patrick Toomey, and Ron Wyden.
Even though senators Toomey submitted the proposed amendment, he requested the exemption of miners and software developers from tax reporting duties. Armstrong further said Americans need to start getting in touch with their representatives for them to do the right thing.
US Officials Have A Poor Understanding Of The Crypto Industry
Galaxy Digital CEO, Mike Novogratz, has argued that United States legislators have a poor understanding of how the crypto industry works, which is more important before they start clamoring for or developing stricter crypto regulations.
The billionaire crypto proponent was responding to comments made by Senator Elizabeth Warren, who again revealed her disdain for the virtual asset space calling it the “wild west world” of the country’s finance institution. The Massachusetts representative has never hidden her displeasure for the crypto industry, even calling Janet Yellen and Gary Gensler to develop stricter crypto policies.
Yellen is the Treasury secretary, while Gensler heads the Security and Exchange Commission (SEC). Even though Gensler acknowledged that cryptocurrencies are valuable assets, he told the aspen security forum that their value is “speculative.” Gensler has always stated that America’s crypto regulation has several loopholes, and there’s a need for crypto policies that deal with decentralized finance, crypto exchanges, and token sales.
Apart from criticizing legislators for lack of understanding of the crypto space, crypto proponents are also criticizing the proposed $1 trillion crypto infrastructure and the additional $29 billion for modification to the current crypto taxation rules. Now, Novogratz’s remarks would form part of their discussion about the crypto regulatory changes.
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