warren-davidson

Congressman Warren Davidson on Why The Infrastructure Bill is Bad for Bitcoin in America | Bitcoin Magazine Podcast

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Key Takeaways

  • A recent infrastructure bill saw the addition of crypto regulations with the stated aim of collecting an additional $28Bn of tax revenues
    • The bill treats anyone who uses crypto as a broker and requires reporting any crypto transactional activity to the IRS
      • “Literally, every kind of transaction that you would get involved in crypto would generate a reporting requirement” – Congressman Warren Davidson
    • “This is a big banks protection act in my view” – Congressman Warren Davidson
  • America has lead with the industrial revolution, automobile, aviation and aerospace, and the Internet.
    • However, this bill is a de facto ban on all blockchain and means abandoning the fintech revolution.
  • Bitcoiners should call their senators in large numbers and let them know how bad this language would be for you personally, for your district and state, and for America’s innovation

Intro

  • U.S. Congressman Warren Davidson (R-OH) (@WarrenDavidson) is one of D.C.’s strongest Bitcoin supporters.
  • Host – David Zell (@DavidZell5)
  • They discuss the last-minute addition of a cryptocurrency tax to the U.S. Senate’s forthcoming infrastructure bill

The Infrastructure Bill

  • A recent infrastructure bill saw the addition of crypto regulations with the stated aim of collecting an additional $28Bn of tax revenue
    • Note, this is on top of the existing capital gains taxes
  • The bill treats anyone who uses crypto as a broker, and requires reporting any crypto transactional activity to the IRS
    • “Literally, every kind of transaction that you would get involved in crypto would generate a reporting requirement” – Congressman Warren Davidson
      • Even, “paying some kid to mow your grass”
  • That said, the bill is still in draft language and is subject to further modifications, possibly by narrowing down its scope

A Hidden Agenda?

  • It’s near impossible to comply with the bill. Thus, it was either skillfully crafted to mute crypto in the US, or it was willfully ignorant
    • “This is a big banks protection act in my view” – Congressman Warren Davidson
    • Keeping in mind, former Secretary of the Treasury Steve Mnuchin tried to kill personal digital wallets
      • “I think treasury understands what they did here” – Congressman Warren Davidson
  • The only tax regulation Congressman Warren would support is to repeal the Sixteenth Amendment
    • It created the income tax, which requires the government to obtain too much personal information
      • “It really is not the government business as to whether you got paid or you ended up paying somebody, did you buy or sell something, gain or lose money.” – Congressman Warren Davidson
    • The new bill extends that logic beyond collecting taxes to collecting all kinds of information

Damage to Innovation

  • Beyond crypto and fintech, the bill harms all applications of blockchain and distributed ledger technology
    • “We are barely at the surface of the use cases in blockchain and it’s really going to cripple growth and development” – Congressman Warren Davidson
  • Section 230 of the 1990 bill facilitated the growth of the internet by providing broad exemption from liability to internet companies from their users’ actions
    • The current proposed bill is the exact opposite; anyone who touches blockchain would be liable for what everybody else does.
  • America has lead with the industrial revolution, automobile, aviation and aerospace, and the Internet. This bill means abandoning the fintech revolution.
    • “That shows how far gone the thinking and logic is here in the capital on a lot of policies” – Congressman Warren Davidson
  • Blockchain and Bitcoin are developing faster outside of the US than inside, and “that is not in America’s best interest”
    • US should offer regulatory clarity for the industry to flourish

Bitcoiners’ Call to Action

  • Call your Senators and Congress member, let them know how bad this language would be for you, your district and state, and America’s innovation
    • It’s crucial to take the time to understand the industry before passing bills
    • Phone calls in large numbers influence what people pay attention to in the House and the Senate
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Notes By Mostafa Khaled

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