Senator Mike Lee of the United States has expressed concern that including a crypto tax provision in the $1.2 trillion infrastructure package will hinder innovation and make Americans poorer. He added that cryptocurrencies are not securities and so cannot be regulated using the same regulations, emphasising that doing so would drive innovation offshore.
During the Senate session on Saturday, U.S. Senator Mike Lee of Utah brought attention to a section in the $1.2 trillion infrastructure package addressing cryptocurrencies, which he described as “a business that is fast emerging within the United States.”
He stated that the crypto clause “seeks to force those who purchase and sell cryptocurrencies to regard it in the same manner as they would a security exchange.”
The senator, on the other hand, stated that cryptocurrencies are “quite different from securities,” adding, “These aren’t just stocks.” It’s something entirely different. It is a medium of exchange that, if broadly accepted, has the potential to facilitate a wide range of economic activities and innovation within the United States of America.”
He stated: “ If, in fact, we pass this bill, mark my words, it’s going to have a chilling effect on innovation within this sector. Places outside the United States may well be the ones to reap the benefits associated with the laws here in the United States if we adopt an unproven, untested, unknown strategy. “
Senator Lee went on to say, “What you’ll see is a flight of creativity, and investments tied to innovation, to offshore sites across the world.”
He warned that the government is “attempting to apply many-decades-old regulatory norms to a fundamentally new kind of exchange – one that, by the way, values the privacy of individuals who engage in it very highly.”