The Senate on Tuesday voted and passed the bipartisan $1.2 trillion Infrastructure Investment and Jobs Act. The bill has seen several amendments and debates, but Republican and Democratic senators alike express concern over the language in a portion of the bill that they fear could destroy the blooming cryptocurrency industry. Sen. Ted Cruz (R-Texas) joined the bipartisan resistance today, saying that the “underlying language” of a part of the bill could “erode” cryptocurrencies.
This section of the bill seeks to impose new rules and tax burdens on platforms that allow users to buy and sell cryptocurrency, an industry that markets itself as an alternative to fiat currency and centralized financial controls. . The provision would require that these platforms report information about the purchase and sale of digital assets to the IRS. However, many such platforms are non-custodial providers, meaning they do not have access to this information—the assets of their users are kept in private accounts that only they can view or access. This makes it practically impossible for these non-custodial crypto providers to comply with this provision.
Cruz criticized the Senate’s efforts to regulate the industry, which he says is a “new and exciting industry” that is “creating jobs.” Cruz continued that “this body doesn’t have five senators who have any real understanding of how cryptocurrency operates. We haven’t had a hearing on this. Haven’t heard. And yet, this body is willing to voluntarily wipe out an industry… [of this legislation] are long lasting. “
“Cryptocurrencies are not tied to any particular piece of dirt,” Cruz warned. The effect of this provision will not be to destroy the crypto market, but to push it overseas as well as the jobs it creates in the country.
Members of the House joined in on this criticism, forming a bipartisan “Blockchain Caucus”. Rep. Tom Emmer (R-Min.) sent a letter to each member of the House expressing his concerns. “it provides” [of the bill] Establishes new IRS reporting obligations for non-custodial blockchain technology providers, entities that do not broker transactions and who have no way of complying with such requirements.” Rep Emmer warned that “left unchanged “The provision in the bill would “further regulate innovation outside the United States.” Emmer continued that “intermediaries conducting broker transactions such as centralized cryptocurrency exchanges must comply with tax reporting obligations as of now.” Examples are platforms like Coinbase, one of the most popular cryptocurrency exchanges on mobile devices. Emmer joined with Reps. Darren Soto (D-Fla.), David Schweickert (R-Ariz.), and Bill Foster (D-Ariz.). Il.).
Debate on the item stalled passage of the bill yesterday when Cruz proposed an amendment removing the entire clause from the law but was rejected by the Senate.
Despite this setback, the debate spread across the Internet. #DontKillCrypto became a trending tag on Twitter due to concerns about the law. Fight for the Future, a technology advocacy group, issued a “red alert” about the bill, asking readers to “tell Congress to protect human rights in the crypto-economy.” In a post, Fight for the Future says that the law “mandates mass surveillance of the crypto-economy in the name of reducing tax avoidance.” It continued, “The issues at hand are not just about taxes – they are about the United States’ ability to participate in cryptocurrencies and a decentralized future that empowers people with the exploitative and manipulative business model of Big Tech. puts it above.”
On the same page, the group posted a form to get people in touch with their representatives and senators. On this page, they report that so far the form has generated more than 41,000 calls to Congressional offices and more than 700 emails from concerned citizens about the law.
With passage through the Senate earlier today, the bill is heading back through the House, where new amendments introduced by the Senate need to be ratified in order to continue in the White House. Should the bill become law, the implications for the crypto markets will remain unclear.
This News Originally From – The Epoch Times