Posted 10 months ago | by Catoshi Nakamoto

Treasury Secretary Janey Yellen has lobbied against the language on crypto put forth by Senators Wyden, Lummis, and Toomey. Meanwhile, Charles Hoskinson the founder of Cardano and IOHK, has urged the crypto community to put aside its likes and dislikes of projects and unite to stop the anti-crypto provision in the infrastructure bill f.

AdobeStock 38857335 Treasury Secretary Janet Yellen Lobbying Against Pro-Crypto Amendment For Infrastructure Bill; Cardano's Charles Hoskinson Urges Unity In Community

UPDATE – 1:00 a.m. EST — Update: According to Forbes, the amendment has been updated to exclude proof-of-stake validators as well as proof-of-work cryptocurrency miners from the crypto tax reporting provision. But this leaves software developers and decentralized platforms exposed to the new statute. The Senate is expected to reconvene tomorrow at 12:00 p.m. EST to finalize voting on the bill.

The Washington Post, reports that Yellen approached key lawmakers with concerns over a proposed amendment that would exempt miners, validators, and other parts of the crypto industry from new impossible tax-reporting requirements. Yellen has displayed clearly that she doesn’t understand the underlying technology that is being dealt with here and risk pushing fin tech innovation overseas.

“Treasury Secretary Janet L. Yellen spoke with lawmakers Thursday to raise objections to the effort led by Senate Finance Committee Chairman Ron Wyden (D-Ore.) and two Republican senators to weakd\d legislation’s proposed cryptocurrency overhauls, according to two people who spoke on the condition of anonymity to share details of private conversations,” The Post reported..

According to the report, Yellen disputed the proposed amendment with lawmakers. More directly, she lobbied Senator Ron Wyden regarding the changes to the bill which, if added to the bill, would exclude certain crypto companies from the reporting requirements for brokers. Wyden is one of three senators behind the pro-crypto revisions with Cynthia Lummis and Pat Toomey.

As previously reported by Bitboy Crypto, the original infrastructure bill currently facing deliberation in the Senate, before heading to the House, HR 3684, proposes implementing stringent rules on businesses involved with cryptocurrencies, expanding reporting requirements for “brokers,” requiring that digital asset transactions worth more than $10,000 are reported to the Internal Revenue Service (IRS.) However, the language used also suggests that anyone in the business of “validating distributed ledger transactions,” and “developing digital assets or their corresponding protocols,” or dealing with mining software or hardware would be subject to more tax reporting requirements for digital transactions.

The nonsensical bill puts impossible expectations on crypto infrastructure which wouldn’t have KYC information of every transaction such as miners and validator nodes, or hardware/software wallet providers. As Compound’s legal council member Jake Chervinsky expressed “they don’t like what we’re building and they’re using the infra bill as a strategic cover to get jurisdiction over non-custodial market actors, which they wanted but failed to get via FinCEN’s proposed rule during transition,” in reference of the Biden administration shifting officials from its predecessor Trump admin.

Another amendment to the Infrastructure deal introduced by Portman and Senators Mark Warner and Kyrsten Sinema would exclude proof-of-mining and sellers of hardware and software wallets. Although, the language in the proposal still suggests crypto developers and proof-of-stake validators would be subject to expanded reporting and taxation that some have described as “unworkable,” or impossible.

Not only is the U.S. Treasury Secretary clueless about the technology but the White House themselves has also expressed the same incompetence endorsing an amendment bill that is pro-Proof Of Work (POW) and against Proof Of Stake (POS) technology as Bitcon.com reported. White House deputy press secretary Andrew Bates said the Biden administration would support the amendment from Warner, Portman, and Sinema but not the reforms proposed by Wyden, Lummis, and Toomey. According to Bates, the former “strikes the right balance and makes an important step forward in promoting tax compliance.” Yellen’s position on the modified amendment by Warner and Portman is unknown. What isn’t unknown, however, is that the Warner and Portman proposed changes would make the original bill even worse as Fight For The Future expresses.

2 bills compared Treasury Secretary Janet Yellen Lobbying Against Pro-Crypto Amendment For Infrastructure Bill; Cardano's Charles Hoskinson Urges Unity In Community

However, if the White House were to get the Infrastructure bill with Wyden, Lummis, and Toomey’s amendment on its desk, they certainly wouldn’t refuse to sign it. Since the crypto provision is only part of the must-pass bipartisan bill, as the White House and Democrats in control of both the Senate and House have other agendas within the legislation regardless it’s expected to pass.

There is also the amendment from Texas Senator Ted Cruz which is entirely separate that would strike the entire deal.

Despite these clowns in Congress transparently showing they don’t understand the technology they are trying to regulate, the market has still continued to trend up with Bitcoin hitting $43K. However, passing a law that could harm or potentially kill the industry will change that quickly which adds to the uncertainty of the market. The CEO of Coinbase, Brian Armstrong (no relation to Ben), tweeted that we were witnessing one of the moments that may define the future of the crypto industry noting that regulation shouldn’t be rushed as the government could “get it wrong.”

Tesla founder Elon Musk chimed in responding to Armstrong, stating this is the wrong time to decide which technology winners should be allowed to operate freely and which will not make it to the future. He added, the situation is not such a “crisis to impose hasty legislation.”

The founder of Cardano and IOHK, Charles Hoskinson expressed there are three steps we must do to fight back. First, Hoskinson said, all members of the U.S. crypto community should call their state senators’ and congressional offices, emailing them and sending them letters expressing outrage about this proposed legislation. He added, that the Crypto community should make it clear how important crypto innovation is for the future of average people in the U.S., as well as for businesses. Second, Hoskinson said we should make a list of pro and anti-crypto politicians and support those with positive support for crypto. Finally third Hoskinson said, we need to educate about the industry itself, from large and small companies to average crypto enthusiasts, we should educate as many people on crypto and the pro-crypto amendment as possible.

As Bitboy Crypto has continued to report, U.S. regulators talk a big game about wanting to protect investors in this market, however, it is their dangerous vomitted illogical rhetoric discussing regulating an industry with nonsensical regulations, that is endangering investors’ investments in the crypto market more than anyone. Yes, we need regulation to stop scams and useless minting of shitcoins that rug pull investors stealing funds or perform pump and dump manipulation schemes. But forcing regulation through a need to pass infrastructure bill isn’t the way as Elon Musk has also said, crypto regulation should be carefully considered and should include input from those of us who work in the industry itself. The fights not over yet, respectfully call your state’s senator and tell them they are about to kill an industry they don’t understand by going here.

If you don’t know what to say you can use this script provided by Fight For The Future.

“Hi, I’m calling to ask that you support the Wyden-Toomey-Lummis amendment to the cryptocurrency provision of the infrastructure bill (H.R. 3684) . This amendment will ensure that the provision does not dramatically expand financial surveillance, harm innovation, or undermine human rights. I also ask that you vote NO on the Warner-Portman-Sinema amendment, which is being described as a compromise but would be a disaster for the technology. Policies that impact basic freedom and the future of the Internet should be debated carefully and should never be attached to must-pass bills. Thank you.”

Bitcoin is currently trading at {FIAT: $43,613.44] UP +6.6% in the last 24 hours according to Coingecko at the time of this report.

About Catoshi Nakamoto

c6ea0c3794492f30883e516d39b2597a?s=90&d=blank&r=g Treasury Secretary Janet Yellen Lobbying Against Pro-Crypto Amendment For Infrastructure Bill; Cardano's Charles Hoskinson Urges Unity In CommunityActivist/Journalist, former writer - We Are Change, The Mind Unleashed, Coinivore, others. Currently writing for - Activist Post and Bitboy Crypto. Not Right or Left Apolitical. I Care About Truths (CATS.) Cryptocurrency enthusiast, I mined and lost 100+ BTC in 2010-2011. I work with - Bitboy, SoMee, CEEK, Presearch, and W3BT aka FMW Media Group. Friend of mostly everyone who isn't a dick. Just A Cool Cat.