Main navigation

Cryptocurrency Industry in Chaos as White House Endorses New Amendment to Controversial Crypto Tax Provision

News
Fri, 08/06/2021 - 04:55
article image
Alex Dovbnya
A White House-supported amendment to the controversial cryptocurrency provision in the infrastructure bill has seemingly divided the cryptocurrency community along tribal lines
Cryptocurrency Industry in Chaos as White House Endorses New Amendment to Controversial Crypto Tax Provision
Cover image via stock.adobe.com
Read U.TODAY on
Google News

A competing amendment to the controversial cryptocurrency tax provision proposed by Senators Mark Warner (D-VA) and Rob Portman (R-OH) has wreaked havoc on the cryptocurrency industry.  

The rewrite was widely criticized within the cryptocurrency community for only giving a pass to proof-of-work mining and sellers of cryptocurrency software and hardware.

As reported by U.Today, the hotly debated provision in the infrastructure bill, which was initially proposed by Portman, could potentially ensnare all sorts of non-custodial cryptocurrency entities by expanding the definition of the term “broker” and enforcing draconian tax reporting rules.

Senators Patrick Toomey (R-PA), Sen. Cynthia Lummis (R-WY) and Ron Wyden (D-OR) jointly proposed a legislative exclusion that would safeguard both miners and software developers.

However, the White House came out in support of the Warner-Portman plan, claiming that it “strikes the right balance” and makes an important step toward enhancing tax compliance.       

The U.S. Senate will reconvene on Saturday in order to continue working on the infrastructure bill after failing to come to an agreement on Thursday night.

Related
Ethereum 2.0: Vitalik Buterin Says London Hard Fork Makes Him More Confident About Merge

A rift within the community

Many members of the cryptocurrency community criticized the Joe Biden administration for picking sides in the debate.

Stuart Alderoty, Ripple’s general counsel, claims that an amendment to the crypto provision should be blockchain agnostic, adding that the government should not be picking winners and losers.

However, Wyden was slammed by the Bitcoin community for describing proof-of-work as “the most climate-damaging” form of cryptocurrency technology.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.