Coinbase CEO Brian Armstrong recently took to Twitter to express his displeasure with the planned changes regarding cryptocurrency taxes in the U.S.
Armstrong said in a tweet on Wednesday that the crypto taxation proposal’s features may have a deep negative impact on the U.S. crypto industry and push digital innovation to go offshore.
The Coinbase CEO, like several other critics of the proposal, objected to the wide meaning of the bill’s phrasing. According to Armstrong, the bill broadens the definition of “broker” to include anybody who facilitates the transfer of digital assets and because of this wide classification, some critics of the law have stated that non-crypto brokerage businesses like miners and software developers might face hefty tax obligations.
Alluding to the bill’s wide broker definition, Armstrong stated This is absurd, given that smart contracts, for example, are not corporations and cannot be changed to gather KYC information or issue 1099s. They are essentially blockchain-based software that anybody may use.
The infrastructure bill also sets broad and unusual regulatory requirements, forcing exchanges like Coinbase and others to monitor their customers’ transactions more comprehensively than the rest of conventional banks.
Armstrong urged cryptocurrency supporters in the United States to support amendments presented by pro-cryptocurrency Senators like Ron Wyden, Patrick Toomey, and Cynthia Lummis that ask for a tighter definition of crypto intermediates. Senator Toomey has previously asked for miners and software developers to be spared from the crypto tax reporting requirements outlined in the bill.
Armstrong also attached a link to a website called “Fight for the Future,” which states that policies affecting basic freedom and the future of the Internet should be thoroughly considered and should never be tied to must-pass legislation.
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