The people of the United States (US) are rumored to have started a 'war' against the government in an effort to save the crypto industry.
🚨 #Cryptocurency Red Alert 🚨
There is a #Crypto provision hidden in a must-pass bill that will allow mass-surveillance of the crypto-economy. Luckily, an amendment has been introduced that addresses these issues.
Tell your Senator to support it ASAP at https://t.co/dGZTUyf9BW pic.twitter.com/7Ma9Sb9XfY
- Fight for the Future (@fightfortheftr) August 4, 2021
In a recent report, the Fight for the Future (FFTF) community has developed the Red Alert site: Call The Senate To Save The Crypto, urging all Americans to ensure their representatives in the Senate support the cryptocurrency allocation amendment proposed by Senator Ron Wyden, Patrick J Toomey and Cynthia Lummis.
What happen?
Last week, Wyden, Toomey, and Lummis proposed an amendment in a bill that exempts crypto miners and software developers from tax reporting claims.
For information, the current bill outlines a requirement for all crypto brokers and investors to report their transactions to the Internal Revenue Service (IRS). This led Lummis to think that amendments needed to be made:
"The amendment clarifies that 'brokers' are those who conduct transactions on exchanges, where users conduct digital asset trading activities, and it does not require information reports from users involved in mining or staking, device sales or peripherals."
The amendment received support from Coinbase, Coin Center, and The Blockchain Asscociation.
However, Senators Mark Warner and Rob Portman came up with other amendments, giving leeway only to Proof-of-Work (PoW) mining. This caused a stir in the crypto community again it received support from the White House.
A long debate
Proponents of the crypto sector described the amendment by Lummis as more acceptable given that not only PoW but also Proof of Stake (PoS) consensus mining and device and software manufacturers were also exempt from the new tax and accounting claims.
Inter-senate discussions regarding this bill will continue later. So far it has not been identified which amendment will be accepted by the majority.
But what is certain is that the new law may not be efficient and as the founder of Stacks claimed, "a kill switch for crypto in the US."
