Mark Cuban, a billionaire investor and previous opponent of cryptocurrency who has now converted to a defender, has argued that the cryptocurrency tax provision included in the $1 trillion infrastructure bill would stifle the sector’s development.
According to The Washington Post, the billionaire said that the clause may effectively shut down the bitcoin and cryptocurrency “growth engine,” which he compares to “shutting down e-commerce in 1995.” Stopping this development engine would be the equivalent of putting an end to e-commerce in 1995 due to concerns about credit card fraud.
Cuban said that it would be comparable to controlling the development of websites decades ago because “some people originally felt they were difficult and had no idea what they would ever amount to.” The Senate’s infrastructure bill’s crypto tax clause has a wide definition of “broker,” describing it as any party “responsible for routinely providing any service effectuating transfers of digital assets on behalf of another person.”
Certain members of the bitcoin community have voiced worry over the bill’s wording, which may classify miners and other network validators as brokers. The Blockchain Association, Coinbase, Coin Center, Ribbit Capital, and Square all voiced worry over the infrastructure bill’s wording, claiming that it would impose “unworkable restrictions on crypto technology.” Mark Cuban’s remarks add him to an ever-growing list of bitcoin industry supporters. According to Forbes, Paolo Ardoino, CEO of Bitfinex, a cryptocurrency exchange headquartered in the British Virgin Islands, stated:
“The bill has the potential to swamp cryptocurrency transactions in the country with an invasive dragnet”
Former Coinbase CTO Balaji Srinivasan has dubbed a late-night change to the bill that would solely exclude proof-of-work mining from reporting requirements a “backdoor bitcoin prohibition” that would make compliance impossible.
Jack Dorsey, CEO of Twitter and Square, has also voiced worry, stating that the measure may push development and operations beyond the United States. Senators Ron Wyden (D-Ore.), Pat Toomey (R-Pa.), and Cynthia Lummis (R-Wyo.) have introduced an amendment to the measure that would limit the bill’s definition of a broker. The Senate, on the other hand, has moved on without considering any changes.
Also Read: Argentina’s President Considering Legalizing Bitcoin
Wallets