By Shelly Melancon (Switzerland)
The US crypto proposal for cryptocurrencies is generating controversy among US lawmakers. US Treasury secretary Janet Yellen has joined in the fray with the latest objection from her over a revision in the proposal. The revision was pushed by three lawmakers including Senator Cynthia Lummis. Ron Wyden and Pat Toomey are the two other lawmakers.
The revision on the crypto proposal is geared towards shedding light on the gray areas concerning cryptocurrencies. Although the proposed revision has been endorsed by the higher authorities in White House, Janet Yellen’s body language is not in sync with the revision. The secretary’s critical comments are yet to be made public.
Proposed Revision to Exempt Some Cryptocurrency Firms from Tax Reporting
Janet Yellen disputed the revision with one of the lawmakers who proposed it, Senator Ron Wyden. She noted that the amended proposal meant that some cryptocurrency firms are exempted from tax reporting guidelines for exchanges. Meanwhile, the original proposal introduces a regulatory sandbox for crypto businesses and exchanges. The proposal also mandates that cryptocurrency transactions exceeding $10,000 should be reported to the US Internal Revenue Service.
It also provides that cryptocurrency firms who engage in confirming blockchain transactions, creating crypto assets and producing tools for crypto mining would be compelled to comply with tax reporting rules for crypto transactions. However, the revision proposed by the three US lawmakers seeks to alter the meaning of a broker in the proposal, thereby removing some cryptocurrency firms from the purview of the proposal’s provisions.
Lawmakers Mark Warner and Kyrsten Sinema likewise pushed for a revision to the proposal, which would also exempt mining tools merchants, and proof-of-mining. This revision suggests that developers and validators on the PoS consensus will have to declare their crypto assets and be subject to taxation. According to a few observers, this is untenable.
Andrew Bates Endorses Warner-Sinema Revision
Deputy Press Secretary of the White House Andrew Bates reasoned that the incumbent government will endorse the revision suggested by Warner and Sinema, and not that recommended by the other three lawmakers. As per the secretary, the former balances the weight and resonates more to encourage compliance with tax regulations.
In a related development, the US regulators are divided on a Central Bank Digital Currency (CBDC). During a stakeholder
s’ meeting to determine the fate of the country as regards a CBDC, participants shared divergent views. For the US Securities and Exchange Commission Head, Gary Gensler, the US is not due for a CBDC yet as it is more important to get it right, rather than moving headlong into one. Similarly, the US is yet to approve a Bitcoin ETF in the wake of a general cryptocurrency adoption.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.