Brian Armstrong, CEO of Coinbase, had a lot of criticism for a proposed crypto tax provision and shared his thoughts Friday on social media.
A proposed crypto tax rule woven into the infrastructure bill has been getting a lot of flack on social media from Coinbase’s CEO. Brain Armstrong, in a series of tweets, made it clear where he stands in reference to the proposed rule. The bill in question proposes that cryptocurrency brokers and investors report all crypto transactions to the IRS. The rule was a last-minute addition to the $1 trillion infrastructure deal working its way through eh Senate.
“This provision could have a profound negative impact on crypto in the US and unintentionally push more innovation offshore,” Armstrong said about the bill. He adds the tax provision was hastily put together and “makes no sense.”
Senate divided on the crypto-tax rule
Brain Armstrong is not alone in his lack of faith in the proposed crypto tax rule. Some in the Senate are also scratching their heads after the 11th-hour addition to the infrastructure deal. Senator Pat Toomey is one such Senator who has spoken up in opposition to the proposition and stated he will propose an amendment to clear up the wording. Senator Toomey agrees with Armstrong’s opinion that the bipartisan bill’s cryptocurrency rule was hastily designed and should not be given the green light until potential fallout is better understood.
The Senator added that it was his belief as it stands, “the text is unworkable,” and is concerned specifically about what the government’s definition of a cryptocurrency broker is. Toomey says that the way the bill currently reads, it could include miners, validators, and other cryptocurrency service providers that don’t fall into the traditional definition of a crypto-broker.
The Senator points out that those individuals o not control consumer assets or have access to any personal information from investors. Toomey states that the amendment penned will help clear up the text and make the bill easier to understand and more agreeable.
Armstrong tweeted his support for Toomey and his team working to get the amendment added to the bill. “Fortunately senators @RonWyden, @SenToomey, @SenLummis have an amendment that narrows the definition to intermediaries.”
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