Coinbase CEO Brian Armstrong says proposed crypto tax rule makes no sense

consultation businessman male lawyer judge counselor having team meeting 1 scaled

The crypto exchange boss is the latest to decry plans to enact sweeping changes to cryptocurrency tax reporting in the United States.

Coinbase CEO Brian Armstrong is the latest crypto figure to come out against the wording of the proposed changes to cryptocurrency taxation in the United States.

Tweeting on Wednesday, Armstrong stated that the provisions included in the crypto taxation proposal could have a “profound negative impact” on the U.S. crypto space and could force digital innovation to move overseas.

As previously reported by Cointelegraph, amendments to crypto taxation rules were a last-minute addition to the $1-trillion infrastructure deal currently before the United States Senate.

The Coinbase CEO, like many other opponents of the proposal, faulted the broad language of the bill’s wording. According to Armstrong, the bill extends the definition of the term “broker” to anyone who facilitates a digital asset transfer.

Indeed, this broad-based definition has seen several critics of the bill saying non-crypto brokerage entities such as miners and software developers could be brought under onerous tax obligations.

“This makes no sense,” Armstrong tweeted, referring to the broad broker definition in the bill, adding, “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.”

The Coinbase CEO stated that policymakers have a responsibility not to hinder innovation in America. Earlier in August, Galaxy Digital CEO Mike Novogratz panned politicians and regulators in the U.S. for failing to do their homework on crypto before enacting laws and regulations.

Related: Mike Novogratz blasts US officials for poor grasp of crypto industry

Armstrong called on U.S. crypto proponents to get behind amendments proposed by pro-cryptocurrency Senators such as Ron Wyden, Patrick Toomey and Cynthia Lummis, calling for a narrower definition of crypto intermediaries.

Before proposing the amendment, Senator Toomey had earlier called for miners and software developers to be exempted from the crypto tax reporting requirements specified in the bill.

Armstrong also joined the chorus of crypto proponents urging Americans to contact their elected representatives to push for the aforementioned amendments.

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 61,312.43
ethereum
Ethereum (ETH) $ 3,378.22
tether
Tether (USDT) $ 0.999903
bnb
BNB (BNB) $ 571.89
solana
Solana (SOL) $ 138.72
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 3,378.91
xrp
XRP (XRP) $ 0.474459
the-open-network
Toncoin (TON) $ 7.60
dogecoin
Dogecoin (DOGE) $ 0.123348
cardano
Cardano (ADA) $ 0.391552
tron
TRON (TRX) $ 0.121397
shiba-inu
Shiba Inu (SHIB) $ 0.000017
avalanche-2
Avalanche (AVAX) $ 25.28
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 61,352.44
chainlink
Chainlink (LINK) $ 13.98
polkadot
Polkadot (DOT) $ 5.80
bitcoin-cash
Bitcoin Cash (BCH) $ 380.79
uniswap
Uniswap (UNI) $ 9.46
near
NEAR Protocol (NEAR) $ 5.58
wrapped-eeth
Wrapped eETH (WEETH) $ 3,508.44
leo-token
LEO Token (LEO) $ 5.76
matic-network
Polygon (MATIC) $ 0.575704
litecoin
Litecoin (LTC) $ 70.81
dai
Dai (DAI) $ 1.00
pepe
Pepe (PEPE) $ 0.000012
fetch-ai
Fetch.ai (FET) $ 1.65
internet-computer
Internet Computer (ICP) $ 8.14
kaspa
Kaspa (KAS) $ 0.155780
ethena-usde
Ethena USDe (USDE) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 23.47
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,403.13
aptos
Aptos (APT) $ 6.96
render-token
Render (RNDR) $ 7.82
monero
Monero (XMR) $ 163.23
hedera-hashgraph
Hedera (HBAR) $ 0.080431
cosmos
Cosmos Hub (ATOM) $ 6.96
arbitrum
Arbitrum (ARB) $ 0.832295
stellar
Stellar (XLM) $ 0.090958
okb
OKB (OKB) $ 41.50
filecoin
Filecoin (FIL) $ 4.42
mantle
Mantle (MNT) $ 0.761409
crypto-com-chain
Cronos (CRO) $ 0.091323
blockstack
Stacks (STX) $ 1.64
immutable-x
Immutable (IMX) $ 1.55
injective-protocol
Injective (INJ) $ 23.22
first-digital-usd
First Digital USD (FDUSD) $ 0.999766
lido-dao
Lido DAO (LDO) $ 2.43
sui
Sui (SUI) $ 0.884347
maker
Maker (MKR) $ 2,273.32