What Happened: Brian Armstrong, co-founder, and CEO of crypto exchange Coinbase Global Inc COIN, joined a list of crypto executives opposing the newly proposed infrastructure bill’s broad definition of crypto brokers.
Calling it a “hastily conceived” provision related to digital assets, Armstrong asserted that the bill could have a profound negative impact on crypto and unintentionally push more innovation overseas.
“Coinbase is happy to help customers fulfill tax obligations just like the rest of the financial services industry. We've been doing this for years, and issuing more 1099s is a great idea,” he said in a thread on Twitter.
“But the bill defines “brokers” to include anyone who “effectuates transfers of digital assets.” This means almost anyone in the crypto ecosystem (miners, validators, smart contracts, open source developers etc) could be treated as a “broker” with massive reporting obligations.”
According to the Coinbase CEO, this makes no sense. Still, in his view, a more concerning feature of the bill is the imposition of unprecedented reporting requirements.
2/ Coinbase is happy to help customers fulfill tax obligations just like the rest of the financial services industry. We've been doing this for years, and issuing more 1099s is a great idea. https://t.co/CFagI7nnbm— Brian Armstrong (@brian_armstrong) August 4, 2021
Armstrong claims that these new reporting requirements will require crypto exchanges like Coinbase to surveil their customer’s transactions in a way that is more intrusive than the rest of traditional finance.
“All we ask for is an even playing field with traditional finance that doesn't penalize cryptocurrency unfairly,” he said.
In light of the widespread criticism that the bill received, The Wall Street Journal reported that Senator Rob Portman agreed on the need to clarify the provision that he wrote.
Price Action: At press time, cryptocurrency markets traded higher, with the overall market cap growing by 3.77% to $1.64 trillion.
Bitcoin BTC/USD gained 4.09% over the past 24-hours to trade at a price of $42,611. Ethereum ETH/USD also traded 2.35% higher over the same period, trading at $2,891 at the time of writing.
Photo: TechCrunch on Wikimedia Commons
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.