U.S. lawmakers call for caution when implementing the proposed tax policy. It may have a serious impact on the U.S. encryption field. The expanded crypto taxation system is the latest addition to the $1 trillion infrastructure deal. The US lawmakers in Congress are discussing this deal at this time. According to the proposed changes, stricter crypto rules could provide the government with an additional $28 billion in funding. Senator Patrick Toomey is one of a group of senators. He warned about the broad language that is used in expanded cryptocurrency taxation policies. According to an article in the Washington Post, he believes that the text of the bill can provide legislative support for wider suppression in the United States. That suppression is beyond exchanges and other target companies and organizations such as Bitcoin miners (BTC) and software developers. Toomey is not the only one to make these claims.
What More Do US Lawmakers Say?
This is because the overwhelming response of industry commentators is that the ambiguity of the legislation leaves enough room for punitive regulatory policies that may harm the world’s digital innovation. Rob Portman is the fellow Senator and drafter of the crypto tax policy. He downplays concerns that the new rules will affect both the miners as well as the software developers. The Washington Post quoted a spokesperson for Senator Portman by saying: “This legislative language does not […] force non-brokers, such as software developers and crypto miners, to comply with IRS reporting obligations.”
After China’s hash rate soared, American miners continued to expand their production capacity. Therefore they worked hard to protect miners from heavy tax filing obligations. By the end of the second quarter of the year 2022, Marathon Digital plans to achieve a hash rate of 13.3 exahashes per second. This figure is approximately 12% of the current total hash rate of the Bitcoin network.
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