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Musk on Proposed Crypto Tax Provision -‘Not the Time to Pick Winners or Losers in Crypto Technology’

2 mins
Updated by Ryan Boltman
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In Brief

  • Elon Musk has joined the discussion regarding the crypto tax provision, part of the Infrastructure Bill to be voted on today.
  • Agreeing with Brian Armstrong's views, Musk said, "there is no crisis that compels hasty legislation."
  • Cardano's Charles Hoskinson has suggested ways the crypto community can be productive leading up to the vote.
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Tesla CEO Elon Musk has weighed in on the discussion surrounding a proposed crypto tax provision. The provision, part of the infrastructure bill, will go to a vote on August 7. Meanwhile, United States senators Patrick Toomey, Ron Wyden, and Cynthia Lummis have suggested an amendment to that provision, working in favor of Proof of Work miners.

Musk replied to a ten-part Twitter thread started by Coinbase’s Brian Armstrong late on August 4. Highly critical of the proposed crypto tax rule, Armstrong’s thread began:

“If you’ve been following threads on the Infrastructure bill, you know that there is a hastily conceived provision related to digital assets.

“This provision could have a profound negative impact on crypto in the US and unintentionally push more innovation offshore.”

Musk agreed, stating in a tweet of his own that:

“This is not the time to pick technology winners or losers in cryptocurrency technology.”

The CEO also went on to say there was “no crisis that compel[led] hasty legislation.”

Crypto community should contact their senators

Elon is not the only high-profile figure in the crypto space to put their two cents in regarding the crypto tax provision and the Wyden-Lummis-Toomey amendment. Cardano founder Charles Hoskinson also weighed in, addressing his followers in a video message, shared on Twitter on August 6, in which he gave three simple suggestions “to be productive” leading up to the vote on August 7. 

His first suggestion was that the crypto community contact their state senators and emphasize the importance of the amendment. Advising viewers to get in touch via email, telephone, and letter, Hoskinson said “if there’s a tsunami wave of passionate support, that’s at least something to get the pump primed.”

This suggestion is in line with Senator Lummis’ own pleas on Twitter that same day. The pro-crypto senator from Wyoming addressed her following on August 6, imploring them to call, tweet and email their senators.

“We NEED you…” her tweet said. “We are facing major headwinds on the Wyden-Lummis-Toomey amendment. Burying financial innovation in red tape & sending devs plus miners on info collection wild goose chases for info they don’t know is horrible policy.”

Other proposed solutions

Hoskinson’s other suggestions included a list of pro- and anti-crypto congressional candidates, politicians, and legislators. Something that he stated should be “an industry-wide effort.”

“It’s very important that the industry come together,” he said in the video. “Set the maximalism aside and realize that there are greater concerns here.

“If something like an Infrastructure Bill can be used to so dramatically change the face of our entire industry and the compliance requirements, then we have to understand that this is the first of many salvos that are coming our way.”

Finally, the Cardano founder emphasized the importance of educating people about crypto and the amendment. Furthermore, he said he would attempt to draw as much media attention as possible to the issue; meanwhile asking industry rivals to follow suit.

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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.