US tax code amendments get pushback from crypto community
Just recently, the White House has approved a controversial amendment to the tax code that would affect all cryptocurrency owners. In response, the cryptocurrency community has mobilised to prevent authorities from passing the controversial amendment — crypto enthusiasts have prepared and published a petition on the FightForTheFuture website.
What is the petition about?
The petitioners are deeply concerned about the controversial measures proposed by Senators Mark Warner and Rob Portman. The cryptocurrency community representatives are convinced that the proposed amendments will not only fail to help the development of the digital asset market, but will also seriously harm cryptocurrencies, companies in the industry, investors and holders, as well as all individuals directly associated with cryptocurrencies. It is also possible that, if adopted, the proposed amendments will destroy the entire cryptocurrency ecosystem.
In addition, the petition also argues that the new measures would greatly expand the US government’s powers regarding surveillance of citizens (in this case, those who hold or work with digital assets). The authors of the petition consider such measures to be too drastic.
Is it really that bad?
Despite the general mood of the petition, there is some good news. By these is meant the proposal made by Senators Wyden, Toomey and Lummis. The aforementioned senators propose to correct some errors in the main provision and clarify their positions on a number of cryptocurrency terms and concepts.
However, many senators have already expressed an opinion on the proposed amendments and, the petitioners also mention senators Warner, Portman and Sinema, whose comments and edits make the bill much worse than it was before.
The crypto community is serious about stopping the amendments
Crypto activists are seriously working with lobby groups and members of the Senate to tweak key features of the bill under discussion. Zach Cole, CTO of decentralised trading platform Slingshot, has even prepared a template to help US citizens express their views on the amendments. It is suggested to be used for sending messages to local senators and speaking out against the amendments.
Bankman-Fried has also spoken out on the issue. He states that if the new bill passes, cryptocurrency organisations will have no other choice but to either shut down or leave the US because “they couldn’t choose to comply even if they wanted to” and “the impact would just be to force crypto infrastructure and innovation offshore.”
In addition, Bankman-Fried opines that consideration of an alternative amendment introduced by Senators Weeden, Toomey, and Lummis proposing “clear, constructive approach towards crypto regulation,” has been delayed.
So recently proposed amendments to the tax code about cryptocurrency are highly questionable and the outcome of this dispute inside the government and between the government and the crypto industry will undoubtedly have a big impact on the crypto market. The final vote for the bill will reportedly take place on Saturday, 7th August.
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