• Senator from the United States asks Congress to prevent the Treasury from picking winners and losers in the cryptocurrency market

  • Senator Pat Toomey of Pennsylvania has asked Congress to prevent the Treasury Department from maximizing its ability to regulate and tax cryptocurrency by picking winners and losers. “Congress should not allow that,” he said.

    Senator from the United States urges lawmakers not to stifle cryptocurrency innovation.

    Concerns have been raised following the White House’s approval of a crypto tax amendment that the US government is picking winners and losers in the crypto space.

    Two crypto tax amendments have been proposed to the $1 trillion infrastructure bill, but the White House has chosen to support the one that favors proof-of-work over all other consensus mechanisms, including proof-of-stake.

    Senator Pat Toomey is one of the amendment’s sponsors, and while it has not been endorsed by the Biden administration, it has gained support within the crypto community. On Friday, he tweeted:

    While I appreciate that my colleagues and the White House acknowledged flaws in their original crypto tax, the Warner-Portman amendment chooses winners and losers based on the type of technology used. That is disastrous for innovation.

    Toomey continued, “The Warner-Portman plan exempts bitcoin miners but not other transaction validators or software developers who create these platforms.” “What exactly does that mean? Depending on the technology used, two identical services could receive drastically different regulatory treatment.”

    The senator went on to say:

    The US Treasury wants as much freedom as possible to regulate and tax cryptocurrency as it sees fit. That should not be allowed to happen, according to Congress.

    “This is not the time for the IRS to use new technology to pick winners and losers. “Crypto has the potential to be the internet’s future,” he added. “How foolish it is to crush it over a tax provision that may raise only $500 million more per year in a $1.2 trillion bill.”

    Senator Toomey went on to say, “The first principle here should be: do no harm,” noting that the “Warner-Portman-Sinema amendment will drive developers to create software outside of the United States.”

    He went on to urge lawmakers not to rush to impose regulations and “get it wrong,” instead of calling for a full public debate to protect American innovation “before potentially disruptive changes that push crypto overseas are made.”

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