Tuesday, November 30

Taxes Will Drive Bitcoin Miners Out Of US, Senator Warns


The United States, little by little, is gaining ground when it comes to Bitcoin mining, after the prohibition of the activity in China, in the middle of this year. But this growth could be interrupted by recently passed legislation: the Infrastructure Law.

This law seeks to increase state revenue through new taxes, with the argument of allocating that money for the construction of roads, bridges, public transport, ports and waterways.

The problem for the industry around bitcoin (BTC) and cryptocurrencies is that the Law includes as brokers (and taxes them as if they really were): application developers, hardware wallet sellers, miners and operators of Bitcoin nodes.

Some parliamentary representatives with knowledge of the problems this would bring to the cryptoassets ecosystem in the United States make their voice heard. Yesterday, November 16, it was the turn of the Republican Senator from the State of Texas, Ted Cruz.

This 50-year-old Canadian-born attorney filed a bill that seeks to amend the inaccuracies of the Infrastructure Law Regarding the definition of “broker”.

As if it were the «neuralizador” of the movie ‘Men in Black‘(a device that erased the memory in the short term of those who saw the light that it emitted), Cruz’s project aims to make a “clean slate” of the conflicting part of the approved legislation:

“The amendments made by the section of the Law on Jobs and Investments in Infrastructure are repealed and the provisions of the law amended by said section are restored as if said section had never been promulgated.”

Senator Ted Cruz’s bill.

Like the “neuralizer” in Men in Black, if the Ted Cruz bill passes, the alleged errors of the Infrastructure Act would be erased “as if they had never been enacted.” Source: Illustrated Fiction / youtube.com

Bitcoin mining grows in the State of Texas

The texan politician justifies the need to amend the Infrastructure Law because, otherwise, “the provision will stifle innovation”. In addition, he says, “it will jeopardize the privacy of many Americans and cryptocurrencies, and likely push key aspects of the industry overseas to countries like China.”

By doing this, Cruz defends not only the interests of the bitcoiner industry but also the interests of your state. As CriptoNoticias reported, Texas is becoming a “paradise” for Bitcoin miners, due to its availability of cheap and clean energy sources.

“The Lone Star State has quickly become the main hub of the cryptocurrency industry, and that exciting industry is now in danger of being stifled and driven abroad by an over-provision in this newly signed reckless spending package.” , protests Cruz.

The Republican representative adds that “as a deliberative body, the Senate should have done its job and held hearings to properly understand the consequences of legislating on this emerging industry before risking the livelihoods and privacy of participating Americans.”

For this reason, Cruz urges his colleagues in the Senate to repeal “harmful language that will create regulatory uncertainty and, in turn, will impose an unnecessary barrier to innovation.”

Senator Ted Cruz urges his colleagues to withdraw provisions of the Infrastructure Act that harm the Bitcoin industry. Source:
Senator Ted Cruz
/ youtube.com

Wyoming senator also raises her voice in defense of the Bitcoin industry

The Texan does not fight alone against the Infrastructure Act (or, at least, against the provision that hurts the bitcoin industry) in the United States Senate. CriptoNoticias reported yesterday that Cynthia Lummis, representative of the State of Wyoming, it also tabled an amendment to correct the imprecision on the definition of “broker”.

The Lummis amendment bill has the support of Senator Ron Wyden (D-Oregon) who chairs the Senate Finance Committee. Now, both bills are waiting to be debated in the legislature of the North American nation.



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