Bobos & Wojaks

Get Rich Or Die Tryin

Crypto space members to fight tax provision

Tug of War with Big Money


Traders and investors who support the use of blockchain technology for online transactions are lobbying against a tax bill before the Senate’s final vote on the $1.2 trillion package, CNN reported. At the last minute, a tax provision was introduced. If enacted into law, a large number of users will be required to disclose files to the IRS.
The language chosen in the statutory text, according to cryptocurrency enthusiasts, is simply too broad and disregards nuance. According to Neeraj Agrawal, head of communications at the crypto policy research tank Coin Center:
“This is no way to make policy. Decisions are being made that will massively influence how cryptocurrency develops in America, but it’s being done as a last-minute addition to a must pass infrastructure bill. There’s been a massive mobilization in DC to try to educate senators and members of Congress about the shortcomings of this language, but we do not have that much time.”
Following supporters’ insistence on making the language more clear in terms of reporting requirements, Senators Ron Wyden of Oregon, Pat Toomey of Pennsylvania, and Cynthia Lummis of Wyoming amended an amendment to the original statute, making the requirements for reporting tax information tougher. Wyden remarked in a statement to the Senate Finance Committee:
“Investors failing to pay tax they owe through cryptocurrency is a real problem, and I strongly support third-party reporting by exchanges where cryptocurrency is bought, sold and traded. Our amendment makes clear that reporting does not apply to individuals developing block chain technology and wallets. This will protect American innovation while at the same time ensuring those who buy and sell cryptocurrency pay the taxes they already owe.”
In reaction to the plans, the digital rights non-profit Fight for the Future, which has a large social media following, encouraged politicians to scale back the planned laws. In an effort to amend the proposal, they recruited activists and directed over 40,000 individuals to their internet portal.