Coinbase CEO Brian Armstrong (Brian Armstrong) is the latest cryptocurrency figure to oppose the proposed change in the wording of the U.S. cryptocurrency tax.
Twitter On Wednesday, Armstrong stated that the terms of the crypto tax proposal could have a “profound negative impact” on the U.S. crypto sector and could force digital innovation to move overseas.
As Cointelegraph previously reported, The amendment to the crypto taxation rules is the final addition to the $1 trillion infrastructure transaction currently before the U.S. Senate.
Like many other opponents of the proposal, the Coinbase CEO made a mistake in the broad language of the bill’s wording. According to Armstrong, the definition bill extends the definition of the term “broker” to anyone who facilitates the transfer of digital assets.
In fact, this broad definition has seen some critics of the bill say that non-encrypted brokerage entities such as miners and software developers may be subject to onerous tax obligations.
“It’s meaningless. Armstrong mentioned on Twitter the broad definition of brokers in the bill, adding: “For example, smart contracts are not companies and cannot be modified to collect KYC information or release 1099. They are just software that can be used by anyone running on the blockchain. “
The CEO of Coinbase stated that policymakers have a responsibility not to hinder American innovation. In early August, Galaxy Digital CEO Mike Novogratz criticized US politicians and regulators for failing to do their homework on encryption before enacting laws and regulations.
related: Mike Novogratz criticizes U.S. officials for their lack of control over the crypto industry
Armstrong called on U.S. cryptocurrency supporters to support the amendment proposed by cryptocurrency-supporting senators such as Ron Wyden, Patrick Toomey, and Cynthia Lummis, calling for a narrower definition of crypto intermediaries.
Before proposing the amendment, Senator Patrick Toomey had earlier called on miners and software developers Exemption from crypto tax reporting requirements Provisions in the bill.
Armstrong also joined the chorus of crypto proponents urging Americans to contact their elected representatives to push for the aforementioned amendments.