Analysts and representatives of organizations met on August 4 to discuss the new and controversial proposal for a tax law on cryptocurrencies from the US Congress, which could have an impact in several areas
The firm Compass Mining brought together Perianne Boring (Chamber of Digital Commerce), Lee Bratcher (Blockchain Council of Texas) and Roger Brown ( CCD Tax Commission), who questioned the scope of the controversial law during a YouTube broadcast. The panel was moderated by Zack Voell and Will Foxley from Compass Mining.
As we have reported in CriptoNoticias, the scope of the proposed legislation could force miners, developers and node operators to pay taxes.
Perianne Boring believed that the entire proposal is a “political posture”, disagreeing with the legal process undertaken by the authorities. Boring also considered that on repeated occasions the authorities have been asked for clarity in the terms , without obtaining it, so it would not be the first time that the issue discussed.
The Internal Revenue Service (IRS) has not provided guidance to the community since 2014, the first time they spoke of taxes for Bitcoin and cryptocurrencies, where they indicated that they would be treated as property. At that time they received more than 300 comments from the industry asking for clarification on many things, basic questions about how to comply with the law, but the IRS has refused to share details to help businesses and people with this.
Perianne Boring, Chamber of Digital Commerce.
For his part, Roger Brown stated that market operators (brokers) have a duty to pay taxes, but in the case of cryptocurrencies, it is unknown how to apply this terminology properly.
Brown explains that it would be really difficult for a user, almost a “forensic” task, to have to analyze the deductible taxes of all operations that he has done with cryptocurrencies.
The analyst considers that although The IRS has taken its time to regulate the collection of taxes, ignorance about the operation of cryptocurrencies makes any business less practical. ier legislation they wish to implement.
Lee Bratcher pointed out that the legislation is based on the premise that the cryptocurrency industry he does not pay any type of taxes, which he considers false. Therefore, Bratcher does not expect the legislation to raise the proposed $ 28 billion .
However, in another Conversation segment, Roger Brown stated that the IRS could approach the cryptocurrency industry not with the will to penalize, but to get to the bottom of the truth regarding paying taxes .
So they could help industry players, such as exchanges, to facilitate the audit of your income. Brown considers that paying taxes is inevitable , so the authorities and large corporations will act accordingly, although in the community there may be people who for political and ethical reasons oppose the payment of taxes.
Bitcoin Education for Users and Regulators
One of the highlighted ideas of the panel was that of educating the community and regulators, as the only way to make the resulting laws appropriate for the cryptocurrency industry.
Perianne Boring deliberately emphasized this idea. from the statements of Congresswoman Elizabeth Warren, who has called for the regulation of Bitcoin as a threat to the US financial system. Boring believes that Warren can nder much of the cryptocurrency community and industry.
The best thing we can be doing as a community is not going to Twitter and saying things negative about those who do not understand us -the best thing we can do is educate them [a los reguladores] and inspire them to take the time to learn about this technology that matters so much to us.
Between the 15-20% of American households currently own some cryptocurrency. As adoption increases and more people join the ecosystem, I think regulators should reflect on this as well.
Perianne Boring, Chamber of Digital Commerce.
Regulations seek their place in a highly varied industry
As reported CriptoNoticias, the bill on a new tax infrastructure for the US, in English Infrastructure Bill , search raise USD 1 trillion annually in taxation.
In the cryptocurrency section, the miners and validators of the network are considered as brokers or asset brokers, which would make them responsible to pay taxes and provide information about its users.
Boring pointed out that the definition of broker was the aspect that most concerned him, as it seems to him an ambiguous term, which does not define the nodes, miners and validators that operate a network or blockchain, Nor does it make it clear if they must pay taxes under Form 1099 (for miscellaneous income).
On August 4, CNBC reported that Senator Cynthia Lummis , a well-known Bitcoin advocate, and other congressmen introduced an amendment to the conflicting sections of the law, however the law is still waiting to be discussed and passed.
For its part, the Securities and Exchange Commission (SEC) is also preparing to legislate cryptocurrency investment funds (ETFs) to protect investors, CriptoNoticias reported this week .
