CEO Brian Armstrong of Coinbase expressed his displeasure with a new crypto tax provision on social media on Friday.
Brian Armstrong has been slamming a proposed crypto tax rule incorporated into the infrastructure package on social media. In a series of tweets, the CEO made plain how he sees the proposed bill. The embedded rule proposes that all cryptocurrency transactions be reported to the Internal Revenue Service (IRS) by cryptocurrency brokers and investors. The provision was tacked on at the last minute to the £0.72 trillion infrastructure bill currently making its way through the Senate.
“This provision could have a profound negative impact on crypto in the US and unintentionally push more innovation offshore,” Coinbase CEO said. He goes on to say that the tax item was slapped on in a hurry and that it “makes no sense.”
Brain Armstrong isn’t the only one who is apprehensive of the proposed crypto tax regime. The addendum to the infrastructure package as left several senators perplexed as well. Senator Pat Toomey, for example, has spoken out against the proposal and announced that he will introduce an amendment to clarify the phrasing. The senator concurs with Armstrong that the cryptocurrency rule in the bipartisan infrastructure bill was rush drafted and should not be implemented until the possible consequences are calculated.
Senator Toomy said that he believes “the text is unworkable” as it reads, and that he is particularly bothered by the government’s concept of a cryptocurrency broker. According to Toomey, the bill’s present wording might cover validators, miners, and other crypto service providers who don’t fit the standard description of a crypto-broker.
He emphasises that not everyone in cryptocurrency has power over consumer assets or access to investor personal information. Toomey claims that the proposed adjustment will help to clarify the wording and make the law more understandable and agreeable. Senator Toomey and his colleagues are working on the amendment to the bill, and Armstrong tweeted to acknowledge the effort.