US senators propose amendment to crypto infrastructure bill

Democratic senators Mark Warner and Kyrsten Sinema have pitched an amendment to the draft infrastructure bill that will arguably ease the tax burden on wallet providers and miners.

More importantly, the amended version will steer clear from what would have originally resulted in “technological winners and losers” in the crypto sector.

Based on the proposed changes, cryptocurrency miners and wallet providers will not be targeted by the new tax reporting provisions, helping them to remain competitive.

Warner and Sinema worked with Republican Ohio senator Rob Portman on the proposals.

Under the previous draft of the bill, miners and wallet providers would have needed to be classified as “brokers” and track user transactions.

According to industry experts, it would be impossible to force miners and wallet providers to comply with the original draft, from a legal standpoint.

Many people within the crypto community spoke out against the original proposal. Coinbase co-founder Brian Armstrong reached out publicly to Warner and said that the original proposal would “decide which foundational technologies are OK and which are not in crypto”.

Elon Musk also chimed in, backing Armstrong. “Agreed, this is not the time to pick technology winners or losers in cryptocurrency technology. There is no crisis that compels hasty legislation.”

Coin Center head Jerry Brito argued that Warner’s original draft was “a misguided attempt to pick technological winners and losers”, reflecting the positions already shared by Musk and Armstrong.

If you don’t take part in this debate, but still use crypto, you would perhaps want to use it at places such as Bitcasino, 1xBit or FortuneJack.

Source

Updated: 08/09/2021 — 09:00