Wednesday, August 10

This is how Coincenter plans to fight back against bitcoin taxes in the United States

Key facts:
  • They consider that some points of the law are unconstitutional and should be corrected.

  • Additionally, Coincenter will seek amendments to future laws.

Jerry Brito, director of Coincenter, an organization that is dedicated to the investigation and analysis of the legislation on cryptocurrencies and decentralized technologies, expressed his dissatisfaction with the approval of the Infrastructure Law of the United States. In addition, he announced the entity’s strategy to face the new taxes.

Through a Twitter threadBrito assured that “despite the efforts” of Coincenter, the Infrastructure Law was approved in the North American country last Friday, November 5. This, as reported by CriptoNoticias, entails a series of taxes on the cryptocurrency industry that include previously unreached actors, such as mining and development. Others, such as traders, investors and exchanges, were already taxed in that country for some years.

However, Brito stressed, “the battle is not over yet”, since the organization “has several paths to follow” to achieve a more convenient outcome for the industry. The new taxes on various activities in the cryptocurrency sector will only be in force since January 2024. Therefore, “there is time to roll back this law before it affects anyone,” said the head of Coincenter on Twitter.

Coincenter’s measures against bitcoin taxes

One of the items on Jerry Brito’s list with the greatest legislative weight is the possibility of taking the law to court, since Coincenter considers that “some aspects of the law” are unconstitutional. As is the case with individual reporting requirements ยง6050I, which determines the obligation to report commercial transactions with other people and the profits obtained from them. Thus, if this is not corrected with subsequent legislation until its entry into force, “we will mount a challenge in court,” he said.

Step by step, Brito detailed the measures that Coincenter will take against the Law
infrastructure. Source: Twitter.

The second measure of the strategy discussed by Brito consists of propose an amendment that could be included in a second spending bill very important that, according to him, the Senate is already studying. In other words, they want to make changes to the law that has already been approved based on another project that is being analyzed.

In this sense, Senator Ron Wyden, chairman of the Senate Finance Committee, “may be key,” Brito said. But there is one fact that โ€” at least โ€” questions this theory. As CriptoNoticias reported, Wyden authored a law to tax unrealized gains with bitcoin (BTC). Therefore, it would be contradictory for the legislator himself to fight for a law that reduces these taxes.

Secondly, Stuck “Has been working with various members of the House of Representatives” for the creation of particular bills to amend the new tax obligations for cryptocurrencies. “We have two years to be approved,” wrote Brito.

Finally, from this organization they will also resort to technical questions, such as the definition of “broker” that the law makes. With respect to this point, they consider that the current definition does not automatically cover miners, node operators and developers, so “the Treasury Department will have to interpret and decide to whom to apply the requirements”, while Coincenter “will participate in that process regulatory โ€.