Wyoming Senator Cynthia Loomis said the Treasury Department could pose a greater threat to blockchains and cryptocurrency innovation in the United States than the Securities and Exchange Commission or the Commodity Futures Trading Commission.
Loomis said at the Texas Blockchain Summit in Austin on Friday that her latest concerns about the federal agency stemmed from language regarding cryptocurrency brokers in the infrastructure bill currently at the center of congressional debate – Treasury Secretary Janet Yellen expressed support law. According to wording adopted by the Senate in August, brokers will be required to report digital asset transactions over $ 10,000 to the IRS.
“The proposed definition demonstrates a fundamental misunderstanding of bitcoin and other digital assets,” said Loomis, who argued that many legal brokers with little knowledge of their clients would not have the information needed to report.
Exactly 3% of the US Senate attended the Texas Blockchain Summit. Texas Senator Ted Cruz talked about bitcoin (BTC) mining, which is used to invest energy from oil and gas production instead of “burning” it – burning profits as wasted fuel. Cruz answered questions about the state’s power grid during a violent winter storm in February, when the senator left Texas for a short trip to Cancun.
While Cruz focused primarily on energy issues, his fellow Senators John Cornin and Loomis noted that the key to avoiding misunderstandings in legislation, such as changing cryptocurrency in the infrastructure bill, depends on public participation, not legislators’ involvement. education on this issue. The formulation of the infrastructure proposal was “somewhat of a surprise” for members of Congress, who didn’t know what to say about it, Kornin said.
Cruz argued that “no five US senators can tell you what bitcoin is,” but Loomis said she noticed “sufficient understanding” following the infrastructure dispute that cryptocurrencies are likely to be changed in the home version of the bill. Congress is currently struggling to pass long-term legislation on infrastructure, budget harmonization, and debt ceilings.
“I’ve worked with members on both sides who weren’t interested in bitcoin and digital assets, and now we know each other and now we talk about it regularly,” Loomis said. “I think there will be some changes in this language, but I’m starting to think about the treasury, the tax authorities, which we really need to work to keep the heavy hand of the government under control.”
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The infrastructure bill, which was originally scheduled to be voted on by September 27, confused the $ 3.5 trillion House proposal in a political maneuver between progressive Democrats and moderates, and Republicans’ efforts to prevent a government default. Religion. Lawmakers are likely to try to move forward this week.