Senator Patrick Toomey and certain members of Congress propose that Bitcoin miners and crypto software developers will not be subject to the newly proposed tax rules.
US lawmakers have urged caution in enacting a new tax scheme that might have substantial ramifications for the crypto industry in the United States.
An enlarged crypto taxation scheme was a last-minute addition to the $1-trillion infrastructure plan presently being considered in Congress, as Cointelegraph has reported.
Tighter laws on crypto reporting requirements, according to the proposed revisions, may supply the government with an additional $28 billion in funding.
Senator Patrick Toomey, on the other hand, is among a handful of senators who have expressed concern over the enhanced crypto tax policy’s wide phrasing.
Toomey stated in a Washington Post piece that the bill’s phrasing might provide parliamentary support for a broader assault on the crypto industry in the United States, going beyond exchanges and other businesses to include Bitcoin (BTC) miners and software developers.
Senator Toomey is not alone in his comments, as the overwhelming response from industry analysts is that the bill’s ambiguous phrasing allows for punitive regulatory practices that might be harmful to the country’s digital innovation.
Senator Rob Portman, a co-author of the crypto tax policy, has downplayed concerns that the new laws will harm miners and software developers.
“This bill wording does not […] force non-brokers, including as software developers and crypto miners, to comply with IRS reporting obligations,” a representative for Senator Portman told the Washington Post.
Efforts to safeguard miners from onerous tax reporting requirements come as American miners continue to expand their capacity in the aftermath of China’s hash rate migration.
Marathon Digital is apparently aiming for a mining capacity of 13.3 exahashes per second by the end of Q2 2022, which is around 12% of the Bitcoin network’s current total hash rate.
