The Cardano Founder proposes crypto enthusiasts write to congress en-masse and create a list of crypto friendly lawmakers. Charles Hoskinson’s solution to the Crypto Bill also seeks to define the definition of Crypto Broker.
The already highly contentious $1 Trillion bipartisan bill which is currently moving forwards in the US congress has further angered cryptocurrency enthusiasts and businesses involved in the space with the inclusion of an Amendment which could have the potential of essentially destroying crypto companies in the USA.
Charles Hoskinson’s Solution: Step One
Charles Hoskinson’s solution is a three-step method, whereby he encourages all crypto-holders to firstly write to, email and call their representatives to point out their opposition to the amendment, and cite the negative economic effects on the burgeoning blockchain industry.
Secondly he proposes setting up a website where politicians are divided into pro- and anti-crypto groups depending on their stance on cryptocurrencies and encouraging the industry as a whole to become much more active politically, supporting pro-crypto lawmakers financially and boycotting those whose stance is against the community.
By engaging the growing, and often highly influential crypto community, Hoskinson hopes that politicians will feel the heat from voters providing or withdrawing support based on their stance, with pro-crypto senators and members of Congress gaining advantages from the community. Which is actually quite a good idea, and would make a change from big businesses being the only lobby that many politicians pay attention to.
Finally, Hoskinson suggest the community engage in much more education around blockchain and cryptocurrency, encouraging everyone, including companies of all sizes as well as individual crypto enthusiasts and investors to take to Social Media and other forums to talk about the ecosystem and its benefits to wider society.
In his livestream on 6th August, Hoskinson advised members of the crypto community to get active over the amendment, which seeks to raise billions in revenue for “infrastructure” financing, by enacting new taxes on crypto transactions, and probably most damaging by adding new reporting requirements for what it relates to as “crypto brokers”. Of course, the term “crypto brokers” has not been defined, meaning that node operators and validators could be forced into reporting customer information, something which they do not have the capability of doing, due to the nature of how Blockchain works.
The crypto amendment, proposed by Senators Warner, Portman and Sinema “strikes the right balance and makes an important step forward in promoting tax compliance” according the White House, but the proposals are at best shaky and ill-conceived and at worst a deliberate attempt to destroy cryptocurrency usage, adoption and the industry as a whole. A competing amendment excluding miners, node operators, developers and others non-custodial industry participants would be exempt from the crypto-tax reporting provision was also filed yesterday.
China recently effectively outlawed crypto mining (and appears hell-bent on ending private crypto usage in the country), with the net effect being billions of dollars of potential revenue outflowing from the Communist Regime into other jurisdictions. So to see America effectively introducing repressive back-door laws in it’s already bloated “infrastructure bill” is a little bit like shooting your gift-horse in the mouth just weeks after it was delivered to you.
“If something like an infrastructure bill can be used so dramatically to 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, so it’s incredibly important that we attach political consequences to attacks on our industry.”Charles Hoskinson, Cardano Founder.
This is such an important topic, and the proposals put forth in this bill may be the key to determining whether the United States stays one of the most important players in blockchain (and potentially other emerging technologies) or whether it is destined to be a third rate player, at the expense of vast technological and financial growth and developments.