1/ If you’ve been following threads on the Infrastructure bill, you know that there is a hastily conceived provision related to digital assets. This provision could have a profound negative impact on crypto in the US and unintentionally push more innovation offshore.
2/ Coinbase is happy to help customers fulfill tax obligations just like the rest of the financial services industry. We've been doing this for years, and issuing more 1099s is a great idea. barmstrong.medium.com/coinbase-and-t…
3/ But the bill defines “brokers” to include anyone who “effectuates transfers of digital assets.” This means almost anyone in the crypto ecosystem (miners, validators, smart contracts, open source developers etc) could be treated as a “broker” with massive reporting obligations.
4/ This makes no sense. Smart contracts, for instance, are not companies, and cannot be modified to collect KYC info or issue 1099s. They are simply software running on the blockchain that anyone can use.
5/ Fortunately senators @RonWyden, @SenToomey, @SenLummis have an amendment that narrows the definition to intermediaries like @coinbase, who actually have the capacity to report, just like in the traditional financial system. (Link: finance.senate.gov/imo/media/doc/…)
6/ The infrastructure bill also imposes sweeping and unprecedented reporting requirements that will force exchanges like Coinbase and others to surveil its customer’s transactions in a way that is more intrusive than the rest of traditional finance (Link: eff.org/deeplinks/2021…)
7/ All we ask for is an even playing field with traditional finance that doesn't penalize cryptocurrency unfairly.
8/ Policymakers play a critical role in ensuring that tech innovation can flourish in the United States. I hope that they keep this in mind and don’t impose draconian burdens on an industry that will play a major role in the innovative future of our country.
9/ This will not happen without your elected reps hearing from you. Please contact your senators and ask them to support the amendment to the infrastructure bill proposed by @RonWyden, @SenToomey and @SenLummis (which gets us part way there by narrowing the definition of broker).
10/ We also need to ask all senators to remove the language requiring sweeping surveillance of crypto holders.
You can use this tool to contact your senators. Thank you! fightforthefuture.org/actions/stop-t…
You can use this tool to contact your senators. Thank you! fightforthefuture.org/actions/stop-t…
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