Crypto Community Opposes Toughening of the US Cryptocurrency Law — Media
The crypto community opposes against a new amendment to the infrastructure agreement, which tightens the reporting rules for developers and validators, freeing miners from liability.
On August 6, Senators Mark Warner and Rob Portman proposed a bill for the cryptocurrency clauses of the White House infrastructure plan, which aims to raise $28 billion to fund its infrastructure by increasing the taxation of individual representatives of the cryptocurrency industry.
The amendment could make life easier for miners and sellers of hardware and software wallets by proposing to exclude them from the bill. But it also suggests that crypto developers and proof-of-stake validators will continue being subjected to a “broken” extended reporting and taxation.
Just hours after the amendment was proposed, Washington Post economic reporter Jeff Stein tweeted that the White House officially supports the legal innovation.
Thus, Stein indirectly confirmed that the White House does not support the amendment proposed by Senators Cynthia Lummis, Pat Toomey, and Ron Wyden.
Senator Toomey said their amendment ensures that non-financial intermediaries such as miners, network validators and other service providers are not subjected to the reporting requirements outlined in the bipartisan infrastructure package.
Coin Center CEO Jerry Brito called the Warner’s and Portman’s amendment disastrous and accused Congress of deliberately dividing the crypto business into “winners and losers.”
In addition, the Warner and Portman amendment received a flurry of condemnation from the crypto community. On FightForTheFuture.org, a petition to oppose the amendment was created, as it expands financial oversight and could irreparably damage innovation.
On August 2, the Electronic Frontier Foundation (EFF) published an article criticizing the amendment, noting that the power to collect customer names, addresses and transactions means that almost every company, even indirectly associated with cryptocurrency, may be forced to spy on its users.
Earlier in an article for the Wall Street Journal, former Securities and Exchange Commission chairman Jay Clayton and former Deputy Treasury Secretary Brent McIntosh defended the U.S. cryptocurrency regulatory apparatus. But they also warned that excessive rule-making could stifle innovation.