Coinbase warns infrastructure bill’s crypto provisions could impact 20% of US population

Aug 23, 2021 | CoinTelegraph News | 0 comments


Coinbase’s global tax VP has slammed Congress for the controversial crypto tax provisions rushed into the infrastructure deal, warning the bill could impact 60 million Americans.

Coinbase’s Global VP of tax, Lawrence Zlatkin, has taken aim at the rushed cryptocurrency provisions added to Congress’ bipartisan infrastructure bill “at the last minute,” slamming lawmakers for hastily inserting amendments that could impact “60 million Americans.”

In an Aug. 21 blog post taking aim at an Aug. 19 editorial article from Bloomberg that praised the infrastructure bill’s crypto provisions, Zlatkin criticized the lack of opportunity for public discourse regarding the legislation, estimating that 20% of the U.S. population are invested in digital assets:

“Today, around 60 million Americans own crypto — roughly one-fifth of the entire U.S. population. Those Americans, and the entire crypto ecosystem, deserve more dialogue than midnight provisions inserted at the last minute.”

Zlatkin notes that outrage over the bill’s language extended beyond the confines of the crypto industry, noting estimates that the popular “public outcry” saw senators contacted by nearly 80,000 people within “just a few days.”

In particular, the Coinbase executive highlighted the broad definition of digital asset “broker” included in the bill — which could impose strict reporting requirements on network validators and software developers who would be unable to comply with their obligations under the bill in its current form.

“As long as the statute says that software developers, miners, stakers must do the impossible, there is no lawyer who would advise them to risk operating in violation of laws whose penalties for non-compliance would easily bankrupt them,” he said, adding:

“This will harm innovation and stifle the potential of a hugely important technology at its earliest stages of development […] Tax policy should be thoughtful and deliberate. Broad overreach is a regulatory mistake.”

Zlatkin added that digital asset brokers should be subjected to the same third-party reporting requirements as mainstream brokerage firms.

Related: Crypto language in the infrastructure bill is a political shell game, says Cointelegraph GC

The controversial infrastructure bill passed the Senate earlier this month, onlookers are hopeful there may be opportunities to amend the legislation as it moves to the House for scrutiny in the coming months.

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