In a tweet replying to Coinbase CEO Brian Armstrong on Friday, Tesla CEO Elon Musk advised legislators contemplating the Senate infrastructure bill’s crypto tax provision not to choose technology winners or losers in cryptocurrency technology.
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 will push digital innovation to go offshore.
Today, Armstrong tweeted again saying that US Senator Mark Warner has suggested an amendment that will determine which basic technology in crypto are acceptable and which are not and titled it as disastrous.
Armstrong stated, Senators Rob Portman, who drafted the original tax provision, and Mark Warner presented an amendment late Thursday aimed at watering down the provision by omitting proof-of-work mining and companies selling hardware or software that allows individuals ownership of private keys for digital assets. On Saturday, lawmakers are poised to vote on a $1 trillion infrastructure plan.
Cryptocurrency is still in its infancy. Across the country, innovators are trying to improve crypto networks, allowing new applications like as NFTs, smart contracts, and DeFi. These will be extremely beneficial to Americans and will assist to secure our position as a financial center.
By burdening miners, validators, smart contracts, open-source developers, and others with huge reporting responsibilities, Armstrong believes the bill might jeopardize the growth of crypto in the United States and drive industry innovation to other nations.
Armstrong advised cryptocurrency advocates in the United States to vote yes on amendments proposed by pro-cryptocurrency Senators Ron Wyden, Patrick Toomey, and Cynthia Lummis, which call for a more precise definition of crypto intermediaries. Senator Toomey has previously requested that miners and software developers be exempt from the bill’s crypto tax reporting requirements.
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