(Paraphrased and condensed, commentary, by Boston C! Article from Zero Hedge - author un-known)
How crypto got wrapped up in the Senate’s $1T infrastructure bill — and what’s next?
After months of negotiations, the Senate voted to approve the Biden Administration’s $1 trillion infrastructure plan — which aims to fix aging roads, bridges, fund ambitious broadband initiatives, and much more. Last week, a last-minute change to the crypto-tax provision was tacked onto the bill, rallying the crypto community to amend what they saw as an innovation-killing, overly broad mandate. The resulting saga included competing bipartisan amendments and nail-biting votes.
The way Boston C! sees it is, something is on it's way and I'm staying on the path and sticking to my 10- 20 year plan. I'm flexible without getting bent out of shape along the way! Embrace constant change and think and live Above the Sun and all will be well! Back to the story.
The controversy is with the crypto-tax provision’s language suddenly was changed. The last-minute changes had two major consequences:
- (1) the definition of “broker” would now reach beyond U.S. crypto exchanges. (like Coinbase)
- (2) would impose reporting requirements that went beyond what is expected of 1099s from a traditional broker.
Coinbase CEO Brian Armstrong acknowledged the importance of tax reporting but explained the provision’s shortcomings:
“This means almost anyone in the crypto ecosystem (miners, validators, smart contracts, open source developers) could be treated as a ‘broker’ with massive reporting obligations ... This makes no sense ... The infrastructure bill also imposes sweeping and unprecedented reporting requirements that will force exchanges like Coinbase and others to surveil its customer’s transactions in a way that is more intrusive than the rest of traditional finance.”
Boston C! says "Do not be anymore or less intrusive than the rest of the corrupt traditional finance institutions. Anyhow clan, things are moving along. So relax, and enjoy the journey! Rest, then more rest!"
Crypto users flooded senate offices with calls and emails as crypto industry advocates in D.C. met with lawmakers. Groups from across the political spectrum, from the Electronic Frontier Foundation to the Americans for Tax Reform, denounced the hasty legislation.
On Monday, five of the six senators proposed a last-minute compromise amendment brokered with the Treasury Department. The amendment seemed poised to pass, in a major victory for bipartisan cooperation in our polarized political era.
But the compromise failed to garner the unanimous consent required by procedural rules. A single GOP senator, Alabama’s Richard Shelby, tanked the amendment by demanding it be packaged with a procedural vote on his amendment for $50 billion in additional military spending.
Bear in mind, there's always a donkey around! So I suggest we all keep ours in the barn!
Finally, why it matters anyways... The crypto industry and a bipartisan group of senators collectively grappled with complicated tech concepts, signaling a growing understanding of the stakes.
“Shutting off this growth engine would be the equivalent of stopping e-commerce in 1995 because people were afraid of credit card fraud,” noted entrepreneur Mark Cuban. “Or regulating the creation of websites because some people initially thought they were complicated and didn't understand what they would ever amount to."
Boston C! is not a Cuban fan. However, he is absolutely right with his statement above. Nevertheless and as always, not financial advice, I'm still trading into relationships, buying silver, gold and cryptos!
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Boston C! Up and away!
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