US Senator Pat Toomey called on Congress to prevent the Treasury Department from maximizing its ability to regulate and tax crypto by picking winners and losers. “Congress should not allow this to happen,” he said.
US Senator Urges Lawmakers Not To Crush Crypto Innovation
Following the White House’s approval of a crypto tax amendment, concerns have been expressed that the U.S. government is picking winners and losers in the crypto space.
Two crypto-tax changes to the $ 1,000 billion infrastructure bill have been introduced, but the White House has chosen to approve one that favors proof of work over all other consensus mechanisms, including proof of participation.
Senator Pat Toomey is one of the sponsors of the amendment which is not approved by the Biden administration but has gained support from the crypto community. He tweeted on Friday:
While I appreciate that my colleagues and the White House acknowledged that their original crypto tax had flaws, the Warner-Portman Amendment chooses winners and losers based on the type of technology used. It’s horrible for innovation.
“The Warner-Portman plan exempts bitcoin miners, but not other transaction validators or software developers who create these platforms,” Toomey added. ” What does that mean? Two identical services could receive radically different regulatory treatment depending on the technology used. “
The senator clarified:
The US Treasury wants maximum flexibility to regulate and tax crypto as it sees fit. Congress should not allow this to happen.
“Now is not the time for the IRS to pick winners and losers with new technology. Crypto has the potential to be the future of the Internet, ”he added. “How foolish it is to squash it on a tax provision that only brings in maybe $ 500 million more a year on a $ 1.2 trillion bill.” “
Senator Toomey added that “the first principle should be: do no harm”, noting that “the Warner-Portman-Sinema Amendment will encourage developers to create software outside of the United States”
He then urged lawmakers not to rush to impose regulations and “get it wrong”, calling for a full public debate to protect American innovation “before potentially disruptive changes are made that push crypto out of business. ‘foreigner “.
What do you think of the US government trying to pick winners and losers in crypto? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.