Venture Capital firm, Andreessen Horowitz (a16z) has called for crypto amendments to the US Infrastructure Bill, while also calling the bill ‘flawed.
Andreessen Horowitz (a16z), a venture capital firm, has written an open letter proposing revisions to the bipartisan, $1.2 trillion infrastructure bill in the United States, which aims to significantly boost crypto tax and earn over $28 billion through cryptocurrency tax enforcement tactics.
The US Internal Revenue Service (IRS) will be able to demand that any digital asset subsidiaries record any transactions involving digital assets under new tax legislation.
On August 4th, Andreessen Horowitz (a16z) published an open letter pushing for changes to the bill. According to the firm, the decentralized crypto sphere offers the country unique prospects for a truly democratic financial framework.
Furthermore, A16z stated that residents should not be denied employment possibilities in a growing economy because of today’s “flawed measure.”
“Decentralized crypto networks represent an extraordinary opportunity for the United States to put forth a proactive strategy that will promote open systems and societies over closed ones, power economic growth, and prioritize job creation. If this bill passed as written without the amendment, it would be counter to what this infrastructure legislation is supposed to accomplish. We can’t afford to sacrifice tomorrow’s economic opportunity because of a flawed bill that has a simple fix.”, A16z stated in the letter.
In addition, the company has made a proposal to provide an alternative to China’s centralized control over digital finances.
According to the report, a decentralized economic network will give not just reliability but also inclusivity in the democratic financial infrastructure.
“China has placed huge bets on its government’s centralized control over the next wave of financial and computing infrastructure. We as a country can offer an alternative: participatory and inclusive infrastructure that works better for everyone.”
The present crypto tax provisions, according to A16z, are ambiguous and need to be changed.
The letter noted that present regulations have the potential to “sweep in non-intermediaries, such as network validators and software developers,” and that placing unreasonable reporting requirements on those entities would disrupt innovation processes.