US Secretary of the Treasury Janet Yellen disagrees with the amendment tabled by probitcoin senators Ron Wyden, Cynthia Lummis and Pat Toomey to a cryptocurrency tax bill. For this reason, she has pressed for the changes not to be approved.
The official held a meeting on Thursday, August 5 with Wyden. There he expressed his rejection of the attempt to limit the proposal that seeks to expand federal regulation on cryptocurrencies , as reported by The Washington Post.
The Yellen’s shares have set off alarms in the cryptocurrency industry and those who support bitcoin. Senator Lummis called on people to communicate with the rest of the senators through different channels to reject the attempt to eliminate her amendment.
«We face great obstacles with the Wyden-Lummis-Toomey amendment. Burying financial innovation in the bureaucracy and sending developers and miners to the gathering of information in search of information they do not know is a horrible policy, “said Lummis on Twitter.
Infrastructure plan with taxes on the cryptocurrency industry
The bill promoted by the Joe Biden government, presented on July 30 and framed in an infrastructure plan, seeks raise about 30,000 million dollars taxing cryptocurrencies, as reported by CriptoNoticias.
The intention of the White House with the law is to compensate the expense of 1.2 trillion dollars demanded by the infrastructure plan that the Biden administration is carrying out.
The Trident Amendment Wyden-Lummis-Toomey
The group of senators presented last Wednesday August 4, the aforementioned amendment to the bill. This is to protect Bitcoin miners , software developers and node operators, so that they are exempt from tax payments.
The heart of the discussion centers on the term “broker” or “broker” . According to how the project is written, this figure will be obliged to submit a tax form after making transfers “in any digital currency.”
In the proposed law, a broker is defined as miners, node brokers, sellers of hardware or software wallets for cryptocurrencies and developers of digital assets or its protocols.
For its part, the Wyden-Lummis-Toomey amendment seeks to limit this definition, specifically to commercial platforms and similar types of entities.
The project The law also states that it would be mandatory to report to the Internal Revenue Service all those transactions that exceed USD 10,000 .
Voices unite in favor of bitcoin
A few days ago, the CEO and founder of Twitter, Jack Dorsey, expressed that the current tax filing language of the infrastructure bill would impose unfeasible requirements on bitcoin node brokers, developers and miners.
Even a non-profit group that promotes the defense of digital rights, called FightForTheFuture, set up a website for people to contact senators, so that they do not approve the law without proposed amendment .
This is a red alert. A provision that is so poorly drafted that it could crush the cryptocurrency ecosystem and dramatically expand US Government surveillance
Fight for the Future, a group of activists in defense of digital rights.
Another character from The cryptocurrency industry that rejected the legislation was Cardano founder Charles Hoskinson. He called on companies in the “blockchain ecosystem” and cryptocurrency enthusiasts to come together in defense of their rights .
