Jack Dorsey Offers ‘Workable Simplification’ for Crypto Tax.

Jack Dorsey, the co-founder of Twitter and CEO of Square, has rejoined the ongoing debate over the crypto tax provision included in the Infrastructure Bill.

On August 8, the tech entrepreneur addressed the provision’s key players in a Twitter thread. Senators Cynthia Lummis, Ron Wyden, and Pat Toomey are among those who authored an amendment to protect software developers, bitcoin (BTC) miners, and hardware manufacturers. Additionally, he singled out Senators Rob Portman, Mark Warner, and Kyrsten Sinema, the authors of a competing amendment.

Dorsey expressed his gratitude and then offered a “workable simplification” in the subsequent thread. He wrote, “Forcing reporting requirements on Americans who develop software and hardware, mine and secure the network, or run nodes to increase resilience and efficiency is an impossible task that will drive development and operation of this critical technology outside the United States.”

Dorsey continued, “If we cannot strike the entire provision to allow for proper hearings and deliberation, then let us narrow the definition of a broker to what is truly important: the location of digital assets exchanged for fiat currency.” The CEO continued by stating that, while senators may believe this solution does not go far enough, it accomplishes 90% of the goal.

For the remaining 10% of edge cases, let us craft an informed law through committee hearings that include withnesses on both sides of the debate

Dorsey

On August 7, the Senate began taking steps toward passing the Infrastructure Bill. However, reports indicate that ongoing negotiations over cryptocurrency regulation have stymied progress. According to reports, the debate will continue today.

Confusion reigns throughout the cryptocurrency space as a result of a tax provision.

Jack Dorsey was one of several prominent figures in the cryptocurrency space who spoke out against the provision. On August 3, he tweeted his support for Wyden and Toomey’s amendment efforts. Brian Brooks, the former CEO of Binance.US (until his August 6 resignation), urged his followers to contact their senators and urge them to support the amendment.

Additionally, other CEOs such as Brian Armstrong of Coinbase, Elon Musk of Tesla, and Charles Hoskinson of Cardano chimed in on the discussion. Armstrong characterized the provision as “hurriedly conceived” and stressed the provision’s potential negative impact on the cryptocurrency industry. Musk concurred, stating that “[n]o crisis necessitates hasty legislation.” Meanwhile, Hoskinson urged the crypto community to be productive in the run-up to the vote. He suggested they contact their senators and educate others about cryptocurrency.

Also Read: The SEC Chairman Calls Congress To Increase Crypto Oversight