Coinbase CEO Brian Armstrong Says Proposed Crypto Tax Rule Makes No Sense

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

Tweeting on Wednesday, Armstrong said 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, the changes to the crypto taxation rules were a last-minute addition to the $ 1 trillion infrastructure deal currently before the United States Senate.

The CEO of Coinbase, like many other opponents of the proposal, criticized the broad language of the wording of the bills. According to Armstrong, the bill extends the definition of the term broker to anyone who facilitates a transfer of digital assets.

Indeed, this broad definition has seen several critics of the bill claim that non-crypto brokerage entities such as miners and software developers could be subject to heavy tax obligations.

It makes no sense, Armstrong tweeted, referring to the broad definition of broker in the bill, adding that smart contracts, for example, are not businesses and cannot be modified to collect KYC information. or issue 1099s. These are simply software running on the blockchain that anyone can use.

The CEO of Coinbase said policymakers have a responsibility not to hinder innovation in America. Earlier in August, Galaxy Digital CEO Mike Novogratz criticized politicians and regulators in the United States for failing to do their homework on crypto before enacting laws and regulations.

Related: Mike Novogratz Slams US Officials For Misunderstanding The Crypto Industry

Armstrong called on U.S. crypto supporters to support the amendments proposed by pro-cryptocurrency senators such as Ron Wyden, Patrick Toomey, and Cynthia Lummis, calling for a narrower definition of crypto intermediaries.

Prior to proposing the amendment, Senator Toomey previously called for miners and software developers to be exempt from the crypto tax reporting requirements specified in the bill.

Armstrong also joined the chorus of crypto supporters urging Americans to contact their elected officials to lobby for the aforementioned amendments.

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