The White House is reportedly in favor of exemptions reserved for minors, which could hurt Proof of Stake.
The administration of US President Joe Biden supports an amendment to the US Senate infrastructure bill that would effectively harm Proof of Stake projects.
As the government tries to raise billions of dollars through cryptocurrencies, senators have introduced stricter tax reporting requirements, among other changes, with two rival amendments introduced after the initial reaction of cryptocurrencies.
The White House has officially sided with Senators Mark Warner (D-VA)and Rob Portman (R-OH) for their “last-minute amendment,” to the great dam many players in the cryptocurrency industry.
Late breaking-White House is coming out formally in support of Warner-Portman-Sinema crypto amendment, implicitly against the Toomey-Wyden-Lummis plan
– Jeff Stein (@JStein_WaPo) August 6, 2021
The amendment aims to exempt Proof of Work miners and network developers from additional tax reporting obligations. Vendors of software and hardware wallets are also exempt from these onerous obligations.
In contrast, the rival amendment of Cynthia Lummis (R-WY), Pat Toomey (R-PA) and Ron Wyden (D-OR) aims to prevent any non-financial intermediary in the industry from falling under the definition of “broker.” This means that miners, validators and payment system developers would not be subject to the strict tax requirements established under a recent deal to raise $ 28 billion in crypto transactions.
According to Wyden, the bipartisan amendment that would not favor the White House offers a ” true common sense solution “to the problem of tax on cryptocurrencies. If the amendments to the bill are passed, he added,” America [paieraient] the taxes they owe on cryptocurrencies while promoting innovation “, in the United States.
Some cryptocurrency commentators say this is not surprising, given the need to remove everything that is not Bitcoin, while others suggested that this will even harm the flourishing ecosystem of decentralized finance (DeFi).
The White House is choosing to Support Proof-of-Work over Proof-of-Stake, in law, in an unrelated infrastructure bill.
This is will have huge consequences for how cryptocurrency develops in America. https://t.co/FYI4xh1VQH
– Neeraj K. Agrawal (@NeerajKA) August 6, 2021
Jerry Brito, the executive director of Washington DC-based crypto think tank CoinCenter, said the White House’s move was “disastrous” and that passing the bill with the changes would amount to ” US Congress picks winners and losers ».
« Senators must vote YES on Wyden-Lummis – Toomey and NO on Warner-Portman “, he said tweeted.
The vote is expected on Saturday 7 August.