The crypto exchange boss is the latest to decry plans to enact sweeping
changes to cryptocurrency tax reporting in the United States.
Coinbase CEO Brian Armstrong is the latest crypto figure to come out
against the wording of the proposed changes to cryptocurrency taxation
in the United States.
Tweeting
on Wednesday, Armstrong stated that the provisions included in the
crypto taxation proposal could have a “profound negative impact” on the
U.S. crypto space and could force digital innovation to move overseas.
As previously reported by Cointelegraph,
amendments to crypto taxation rules were a last-minute addition to the
$1-trillion infrastructure deal currently before the United States
Senate.
The Coinbase CEO, like many other opponents of the
proposal, faulted the broad language of the bill’s wording. According to
Armstrong, the bill extends the definition of the term “broker” to
anyone who facilitates a digital asset transfer.
Indeed, this
broad-based definition has seen several critics of the bill saying
non-crypto brokerage entities such as miners and software developers
could be brought under onerous tax obligations.
“This makes no
sense,” Armstrong tweeted, referring to the broad broker definition in
the bill, adding, “Smart contracts, for instance, are not companies, and
cannot be modified to collect KYC info or issue 1099s. They are simply
software running on the blockchain that anyone can use.”
The
Coinbase CEO stated that policymakers have a responsibility not to
hinder innovation in America. Earlier in August, Galaxy Digital CEO Mike
Novogratz panned politicians and regulators in the U.S. for failing to
do their homework on crypto before enacting laws and regulations.
Related: Mike Novogratz blasts US officials for poor grasp of crypto industry
Armstrong
called on U.S. crypto proponents to get behind amendments proposed by
pro-cryptocurrency Senators such as Ron Wyden, Patrick Toomey and
Cynthia Lummis, calling for a narrower definition of crypto
intermediaries.
Before proposing the amendment, Senator Toomey had earlier called for miners and software developers to be exempted from the crypto tax reporting requirements specified in the bill.
Armstrong
also joined the chorus of crypto proponents urging Americans to contact
their elected representatives to push for the aforementioned
amendments.
source link : https://cointelegraph.com/news/coinbase-ceo-brian-armstrong-says-proposed-crypto-tax-rule-makes-no-sense
