cryptoshitcompra.com/wp-content/uploads/2021/08/Monedas-PoS-Lightning-DeFi-y-DEX-en-perigro-a-medida.jpeg »alt =» PoS, Lightning, DeFi and DEX currencies in danger while Bill Chaos scale 101 ″ class = »content-img» /> Source: Adobe / gelangelan
It appears that chaos has erupted in the world of American politics and the crypto community could be caught in the eye of the storm, as proof-of-stake (PoS) networks could now be put in jeopardy at a time when Ethereum ( ETH) is moving. towards PoS. Additionally, the Lightning Network, decentralized exchanges, and DeFi could also take damage. (Updated at 16:39 UTC: updates throughout the text).
A controversial infrastructure bill that is rushing through the parliamentary system contains a number of clauses on cryptocurrency players and how they are taxed. As previously reported, most of these fall within the legal definition of ‘broker’. This week, the American crypto community attempted to increase support for a bipartisan amendment to the bill introduced by three senators, including crypto enthusiast Cynthia Lummis.
original bill could force the cryptocurrency mining and trading community to shell out a staggering $ 28 billion to help fund public spending projects worth hundreds of billions of dollars. “broker” status would oblige miners and developers to provide complete lists of documents and transaction history records to Revenue Agency officials – before paying taxes on their historical assets and profits.
Lummis, along with Senate Finance Committee Chairman Ron Wyden and Republican Senators Pat Toomey, have proposed an amendment that exempts miners, validators, blockchain developers, and wallet developers from being classified as “brokers” and , therefore, subject to all the provisions of the bill.
Meanwhile, Treasury Secretary Janet L. Yellen spoke with lawmakers Thursday to raise objections to the effort led by Wyden and other senators to undermine the cryptographic revisions proposed by the legislation, Washington Post. reported, citing two unknown individuals. Yellen pressed Wyden on the matter, according to the report.
And now, a new interpretation has been rolled out at work, in the form of a rival new amendment that appears to have the support of the presidential office.
amendment was launched by Senators Rob Portman, Mark Warner, and Kyrsten Sinema. Confusingly, perhaps, this new amendment proposed the same for the exemption as the original amendment, but only for proof-of-work (PoW) miners, such as Bitcoin (BTC) and (for now), ETH miners. This means that developers and validators on proof-of-stake networks such as Cardano (ADA) (or Ethereum 2.0 not yet released) would be classified as brokers, while Bitcoin protocol professionals would escape unscathed.
Read also More from the Fed’s Kashkari: It states that the cryptocurrency market is similar to the “wild west”, it is “full of nonsense”.
Some were quick to point out that, in some respects at least, there appeared to be little or no difference between at least some parts of the latest amendment proposal.
Comparison of two amendments to the infrastructure law #Bitcoin https://t.co/VIykpehEOB
– Joe Carlasare (@JoeCarlasare)
However, Composite Labs General Counsel Jake Chervinsky stressed that “Portman-Warner protects PoW miners and some (but not all) portfolio projects. That is all”.
“Not software developers, not Lightning node operators, not PoS validators, not DEX liquidity providers, not DeFi aggregators, not many other non-custodial actors who cannot comply with the law,” he said.
And it looks like the new amendment may have powerful supporters. White House Producer Pat Ward tweeted a statement from Andrew Bates, the White House Under Secretary of Press, who said:
administration is pleased with the progress that has resulted in a commitment sponsored by Senators Warner, Portman, and Sinema to advance the bipartisan infrastructure package and clarify the measure to reduce tax evasion in the cryptocurrency market. It will strengthen tax compliance in this emerging area of Financing and ensure that high-income taxpayers contribute what they owe under the law.
Jeff Stein, an economic reporter for the Washington Post confirmed that the White House “is formally coming out in support of the Warner-Portman-Sinema crypto amendment” and “implicitly against the Toomey-Wyden-Lummis plan.”
And the original amendment appears to have not gone bad enough so far, with a key debate in the Senate tomorrow.
Bates continued:
“We are grateful to President Wyden for his leadership in pressing the Senate to address this issue, however we believe that the alternative amendment tabled by Senators Warner, Portman and Sinema strikes the right balance and takes a big step forward in advocating of tax compliance. «
Meanwhile, according to Chervinsky, “it is said that this was all an idea of the Treasury.”
“y don’t like what we are building and their solution is to obtain jurisdiction over the actors who have no participation. y have tried. FinCEN’s proposed rule last year failed. Now they are trying again. problem is that they could do it this time, “he said.
Lummis has launched a desperate appeal, writing:
“We need it. Please call your senators. Please tweet. Please send an email. We face significant hurdles in the Wyden-Lummis-Toomey amendment. Bury financial innovation in the bureaucracy and present. [developers] and intelligence gathering miners chasing the wild hen for information they don’t know is horrible policy.
Wyden, meanwhile, has taken aim at the rival amendment, noting:
“ Warner-Portman-Sinema Amendment provides a government-approved safe haven for the most climate-damaging form of crypto technology, called proof of work. It would be a mistake for climate and innovation to push this amendment. ‘
Jerry Brito of Coin Center , one of the main supporters of the Wyden-Lummis-Toomey Amendment, called the Warner-Portman-Sinema measure is “disastrous” as it “excludes only proof-of-work mining” and “does not nothing by the software [developers]. “If the rival amendment passes, he added” this is the United States Congress choosing winners and losers. ” His sentiments were echoed by Senator Toomey.
Legal expert Sarah Shtylman, a consultant to Perkins Coie , opined that the Warner-Portman-Sinema amendment “demonstrates blatant favoritism or a profound misunderstanding of the technology in question.”
“It is very likely that the infrastructure bill as a whole will pass and then go to the House. Depending on what happens to the cryptocurrency supply, we can push for an amendment there as well. After that, the crypto provision won’t go into effect until 2023 at the earliest, so that we can continue to fight to overturn it in Congress or in court, ”Chervinsky explained.
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Reactions:
Warner Amendment was poorly written. As many have pointed out, it is technically inconsistent and could have unintended consequences.
– Kevin Werbach (@kwerb)
this this this this this
– Meltem Demir ◎ rs (@Melt_Dem)
@bitcoinmom No chance Brook. Bitcoin was designed for this, while shitcoins have used passwords to scam the g… https://t.co/80WLawwQfD
– Mr. Hodl (@MrHodl)
@parkeralewis @SenTedCruz If only politics made so much sense.
– Lyle Pratt (@lylepratt)
Politics in 2021 is the Senate and the White House fighting over the relative merits of the blockchain consensus mechanism… https://t.co/WhEFeGFj8G
– nic carter (@nic__carter)
best part of this deal with Washington is the boomers pretending to understand how to pay for all things.
– Travis Kling (@Travis_Kling)
@BTCization imagine asking a bank for permission to access your money
– Mike Alfred (@mikealfred)
I am now a single issue voter
– Meltem Demir ◎ rs (@Melt_Dem)
An interesting aspect of the battle for regulation of cryptocurrencies is that it is not divided along partial lines.
– Zach Weissmueller (@AbridgedZach)
This is not to say that a good regulatory regime is not important. Obviously it is. And @coincenter and his friends are doing… https://t.co/Jj9IJcBx1G
– Ethan Buchman (@buchmanster)
@CaitlinLong_ Warner-Portman Amendment is there to trick you into supporting the Wyden-Lumis-Toomey Amendment, a… https://t.co/dn5jYctaXn
– BigSkyTraveller (@RationalMT)
@hasufl I mean, they have a lot of political capital, so yeah, it affects the way legislators think about their vote.
– Zack Voell (@zackvoell)
@jchervinsky @iamDCinvestor @econoar Imo the alternative (and much less desirable) amendment, and then the Whitehou… https://t.co/ikjCiITGfZ
– S / auto / us (@Sicarious_)
We all need to realize that this will be commonplace for cryptocurrencies and define the next 20 years when it comes to regulating… https://t.co/4yqS2ZFhhf
– eric.eth (@econoar)
As @balajis points out, it would also lay the groundwork to criminalize the basic functionalities of BTC, such as running a node later or… https://t.co/vMeIUpaW3L
– Hasu (@hasufl)
_____ To find out more: – ‘Don’t Lull’ as European Commission Ponders a KYC Encryption Trap – US Infrastructure Act Damages Privacy, Innovation and Decentralization – EFF
– “Fiat-like” Proof of Stake chains favor centralization and wealthy players
– lobbying power of the cryptocurrency industry grows as former officials switch sides. – Want to fix financial literacy? Focus on billionaires and politicians
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