The US Senate is discussing a crypto provision put forward by Rob Portman, Mark Warner and Kyrsten Sinema. That suggests increasing requirements for crypto brokerage reports to the IRS and filing for transactions on certain kinds of digital assets.
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The provision was narrowed down later, however, the crypto community doesn't approve it.Many expressed their views on social media. Among them is the CEO of leading crypto exchange platform Coinbase, Brian Armstrong. On August 5, Armstrong posted that the suggested changes might harm crypto innovations in the USA and push more companies outside of the country.
The main issue that Armstrong and others see in the proposal is its broad language. There is no clarification for who the term "broker" refers to. That can be any part who eases transfers of digital assets. So, provision if approved could affect miners and software developers as well.
Tesla CEO Elon Musk supported Armstrong's words commenting on his tweet that it's not the time to choose crypto winners or losers.
Agreed, this is not the time to pick technology winners or losers in cryptocurrency technology. There is no crisis that compels hasty legislation.
— Elon Musk (@elonmusk) August 6, 2021
The amendment presented on August 6, mentions excluding proof-of-work mining and hardware/software wallet businesses from the bill.
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According to Armstrong, the bill makes no sense and it needs clearer definition. He calls for people to send mails to Senators and urge them not to vote for the alternative presented by congressman Lummis, Toomey, and Wyden as it clearly states that miners, entities confirming DLT transactions and those developing digital assets for their networks won’t be a subject of taxation.