Posted 6 months ago | by Catoshi Nakamoto
U.S. Senator Mike Lee (R-UT) and Bill Hagerty (R-TN) have raised concerns that the $1.2 trillion infrastructure bill will stifle innovation. Both Senators explained that regulating cryptocurrencies in a hasty fashion would drive innovation offshore.
U.S. Senator Mike Lee stated that crypto was “an industry that’s rapidly developing within the United States.”
He expressed the crypto provision in the infrastructure bill “seeks to require those who buy and sell cryptocurrency to treat it the same way as they would the exchange of securities.”
However, Lee argued that cryptocurrencies are “very different than securities.” Lee expressed, “These aren’t just stocks. It’s something very different. It’s a medium of exchange that, if adopted more widely, could facilitate a lot of economic activities and a lot of innovation within the United States of America.”
Lee warned if the bill passes it will cause a chilling effect on innovation.
“If, in fact, we pass this bill, mark my words, it’s going to have a chilling effect on innovation within this sector … Places outside the United States may well be the ones to reap the benefit associated with the laws here in the United States if we adopt an unproven, untested, unknown strategy.”
Lee further cautioned his other Senators and President Biden: “What you’ll see is the flight of innovation, and investments related to innovation, to offshore locations around the globe.”
Lee advised his colleagues that the government is “trying to adopt many-decades-old regulatory policies to a completely new form of exchange — one that, by the way, values very highly the privacy of those who exchange in it.”
The Senator concluded: “If what you’re going do is take away that value by requiring that all of it be registered and publicly disclosed by giving the federal government the ability to peer into it, you’re going to stifle innovation, you’re going to make a lot of people upset, and you’re going to make Americans poorer.”
Senator Bill Hagerty also spoke to his fellow constituents and President Biden, stating: “
Hagerty further said: “I am opposed to this legislation is because of its Big-Government, top-down approach. It includes many half-baked components that deserve much further scrutiny.” He added, “Rather than compete against China using our unparalleled economy, innovation, and ingenuity, we’re substituting massive government control to dictate, fund, and decide winners and losers.”
The Senator expressed that the government was trying to pass a bill without knowing what the effects would be on the cryptocurrency industry.
“We’re using the cryptocurrency market as a pay-for. Have we fully vetted how this new regulation and taxation will affect this rapidly developing industry?” Hagerty asked. Adding, “Will leadership in this industry flee the United States as a result?”
🚨 #Cryptocurency Red Alert 🚨
There is a #Crypto provision hidden in a must-pass bill that will allow mass-surveillance of the crypto-economy. Luckily, an amendment has been introduced that addresses these issues.
— Fight for the Future (@fightfortheftr) August 4, 2021
As the debate around the proposal to tax all participants of the crypto markets as “brokers” rages on, Fight For the Future has invited all Americans to call and email their local representatives in the Senate to tell them to support the Wyden-Toomey-Lummis amendment to the cryptocurrency provision of the infrastructure bill (H.R. 3684).
You can watch the historic speeches by Senators Mike Lee and Bill Hagerty below!
Bitcoin is currently trading at [FIAT: $43,810.31] UP +0.3% in the last 24 hours according to Coingecko at the time of this report.