Coinbase vice president of tax policy, Lawrence Zlatkin, criticized US lawmakers for hasty adoption of an infrastructure bill that would “badly affect 60 million Americans.”
In early August, the US Senate passed a bipartisan bill aimed at funding $ 28 billion in infrastructure by collecting additional taxes on cryptocurrencies. It introduces an extended concept of “cryptocurrency broker”, which can refer to software developers, transaction validators, and node operators. Earlier, an amendment was proposed that exempts them from falling under this definition, but still the bill was adopted without clarification.
Zlatkin published
article on the Coinbase blog, in which he said that US lawmakers acted recklessly by passing the bill too quickly and not giving the public an opportunity to discuss its provisions. According to Zlatkin, outrage over the wording of the bill went beyond the cryptocurrency industry and caused a “public outcry.” Within a few days, about 80 thousand people have already turned to the senators.
“Today, about 60 million Americans own cryptocurrencies, which is about a fifth of the US population. These people and participants in the cryptocurrency ecosystem deserve more dialogue than the “midnight” regulations adopted at the last minute, “Zlatkin said.
He noted that transaction validators and software developers will not be able to comply with strict reporting requirements and fulfill obligations under the current draft law. This will hinder the development of the latest technologies and “crush” their potential in the early stages of development. The expert believes that the same third-party reporting requirements should apply to cryptocurrency brokers as to traditional brokerage companies.
“The tax policy must be well thought out. Over-regulation will be a mistake as the impossible is required of miners and stakers. There is no lawyer who would advise them to take risks and act in violation of the law, because fines for non-compliance can easily ruin them, ”Zlatkin said.
In addition, Zlatkin said that Coinbase will open a Tax Center next month to educate and support customers to help them comply with tax obligations. Coinbase has called on the IRS and other regulators to engage in constructive dialogue to discuss acceptable regulations for overseeing the cryptocurrency industry. Zlatkin is convinced that the amendment proposed by Senators Ron Wyden, Cynthia Lummis and Pat Toomey will eliminate confusion and prove the effectiveness of public dialogue.
Last week, Compound Labs General Counsel Jake Chervinsky called the passed bill a “conspiracy” by the US Treasury Department against decentralized finance.
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