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Jack Dorsey Offers ‘Workable Simplification’ Regarding Crypto Tax Provision

2 mins
Updated by Ryan James
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In Brief

  • Twitter CEO Jack Dorsey recommended simplifying the definition of broker to help achieve 90% of senators' goals.
  • Dorsey previously voiced support for the Wyden-Lummis-Toomey amendment.
  • The senate began proceedings around the Infrastructure Bill and crypto tax provision on August 7.
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Twitter co-founder and Square CEO Jack Dorsey has rejoined the ongoing discussion regarding the crypto tax provision proposed as part of the Infrastructure Bill. 

The tech entrepreneur addressed the leading figures involved in the provision in a Twitter thread on August 8. Such figures as Senators Cynthia Lummis, Ron Wyden, and Pat Toomey, who authored an amendment that would offer protection for software developers, bitcoin (BTC) miners, and hardware manufacturers. He also tagged Senators Rob Portman, Mark Warner, and Kyrsten Sinema, authors of a competing amendment.

After expressing his thanks, Dorsey offered a “workable simplification” in the ensuing thread. He wrote, “Forcing reporting rules on Americans who develop software and hardware, who mine and secure the network, or who run nodes to build resilience and efficiencies, is an impossible ask that will only drive development and operation of this critical technology outside the US.”

Dorsey continued, “If we can’t strike the entire provision so we can have proper hearings and deliberation, then let’s simplify the definition of broker to what really matters: where digital assets are exchanged for fiat currency.”

The CEO went on to say that, while the senators may not feel this solution would go far enough, it would achieve 90% of the goal.

“For the remaining 10% of edge cases, let’s make a proper well-informed law through committee hearings with witnesses on both sides of the debate,” Dorsey said.

The Senate began taking steps toward passing the Infrastructure Bill on August 7. However, reports indicate that the continuing negotiations around regulating the cryptocurrency industry have stalled proceedings. The debate will reportedly continue today.

Tax provision causes consternation throughout crypto space

Jack Dorsey was one of many prominent figures in the crypto space to voice his opposition to the provision. On August 3, he tweeted his support for Senators Wyden and Toomey’s efforts towards an amendment. Brian Brooks, at the time CEO of Binance.US (until his resignation on August 6), encouraged his following to call their senators and support the amendment. 

Furthermore, other CEOs such as Coinbase’s Brian Armstrong, Tesla’s Elon Musk, and Cardano’s Charles Hoskinson weighed in on the discussion. Armstrong referred to the provision as “hastily conceived” and emphasized the potential negative impact on the crypto industry. Musk agreed, stating that “[t]here is no crisis that compels hasty legislation.”

Meanwhile, Hoskinson encouraged productivity in the crypto community ahead of the vote. He suggested they contact their senators to voice their support, as well as educate others about crypto.

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Dale Hurst
Dale Hurst is a journalist, presenter, and novelist. Before joining the Be In Crypto team, he was an editor and senior journalist at a news, lifestyle and human-interest magazine in the UK. Cryptocurrency was one of the first subjects he specialized in when first going freelance in 2018, reviewing exchanges and analysing lawsuits.