According to reports, the trillion-dollar infrastructure construction plan proposed by the Biden administration is about to be voted on in the U.S. Senate. Recently, from California’s Silicon Valley to Washington, many political and business leaders in the U.S. have expressed interest in this plan for cryptocurrency transactions. The content of taxation expresses hidden concerns. Last Saturday, U.S. Senator Ted Cruz said that the Biden government’s infrastructure construction plan included “dangerous clauses” that could bring a major blow to cryptocurrency and blockchain innovation.
Musk, the head of Tesla Inc. and a long-time supporter of cryptocurrencies, said that this plan is too hasty, and that it is not yet for US lawmakers to choose the winners or losers of the new technology.
Last week, the Senate proposed a revised infrastructure plan bill for Biden’s plan, which includes a new tax on cryptocurrency trading companies and brokers. This new tax is expected to collect $28 billion in the next ten years. The White House stated that the funds obtained from the new tax on cryptocurrencies will be used in Biden’s infrastructure package.
This new tax has aroused public criticism. Critics say that the actual tax target of this new tax may exceed the expected range. In fact, some cryptocurrency companies have not met the tax filing requirements.
Propose amendments
Last week, three U.S. senators proposed an amendment to the law. They were Ron Wyden, Cynthia Lummis and Pat Toomey. The content of this amendment is to more precisely define “cryptocurrency brokers.”
Lu Mingsi said in a statement that the field of digital assets and financial technology is extremely complex. U.S. senators have cooperated with the Biden administration and industry stakeholders to integrate digital assets into the tax law without compromising technology or suppressing innovation.
Several other senators also proposed another amendment, which was supported by the White House. This amendment will allow some cryptocurrency investors to avoid being levied new taxes.
The White House Press Secretary Psaki said that the White House believes that the above-mentioned second amendment has reached a certain balance, which is also an important step in improving the compliance of new taxes for industry companies.
Silicon Valley Dissatisfaction
U.S. cryptocurrency related companies stated that the two amendments mentioned above are not strong enough to protect an emerging cryptocurrency market.
A spokesperson for the well-known American venture capital firm “Anderson Horowitz” said that if the second amendment is passed, it will be a loss for the entire United States and will affect the United States‘ ability as the world‘s innovation center.
Senator Tu Mi said that the White House has admitted that there are problems with the new cryptocurrency tax, but the second amendment selects winners and losers based on the technology used, which is very bad for technological innovation.
Stuart Alderoty, an attorney for the US cryptocurrency company Ripple, stated on Twitter that, as the company has held for many years, the US government should not pick winners and losers in the cryptocurrency market.
Suppress innovation
The CEO of Twitter and Square, Jack Dorsey, said the new tax will drive technological innovation out of the United States.
Dorsey stated that if the legislators are unable to finalize the terms, they can conduct hearings or more considerations. For example, the definition of a cryptocurrency broker can be determined as “a place where digital assets are exchanged for legal tender”, that is, “brokers.” Quotient = legal currency to cryptocurrency trading platform”.
Anne Fauvre, chief operating officer of Oasis in the United States, said that the content of the new Senate bill will inhibit the innovation of US cryptocurrency companies in the next 20 years.
Frei said that the role of the regulatory system should be to create a guardrail for the industry, but the Senate bill will completely destroy a starting industry, and this bill will also “kill the innovation and value creation of American companies.”
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