Washington, D.C. (July 30, 2021) – Twelve regional blockchain associations from across the United States today sent a letter to Congress urging members to reject a provision in the $1.2 trillion infrastructure deal that would threaten America’s budding cryptocurrency industry. The signers, representing industry leaders from across the country, speak for the thousands of current and potential workers in the crypto space whose jobs could be lost if this provision is signed into law. The text of the letter is as follows:
To Whom it May Concern:
As a collective body of State Associations representing and promoting the blockchain industries of 12 states and territories, we are thankful for the much anticipated Bipartisan Infrastructure Bill currently being presented before Congress. We greatly appreciate the tireless work that our Senators have put in to provide much needed relief to the businesses and industries within our states.
One provision within the Infrastructure bill, however, poses an imminent threat to the budding crypto industry here in America. We stand with the Blockchain Association in our belief that the provision entitled “Enhancement of Information Reporting for Brokers and Digital Assets” will serve as a major hindrance to small innovators and the crypto ecosystem at large, risk driving jobs overseas, and strike at the heart of innovation.
Our State Associations are eager to see guidance for traditional cryptocurrency exchanges to report to the IRS, but as currently drafted, the language under consideration would burden individuals and other entities that don’t have access to the information required for this particular type of reporting. What Congress is considering with this measure is not a new tax on the cryptocurrency industry. Instead, it puts new reporting requirements on individual players in the industry who have no way to comply.
These individuals will be faced with impossible-to-fulfill reporting requirements that could thwart critical investments in our economy and communities within our states. Smaller tech companies will inevitably begin to move overseas in order to avoid these unfeasible reporting requirements and continue operating. Such a move will only cede American leadership in the crypto space to our international competitors and undermine potential job growth in our states. Meanwhile, these relocations will prevent Congress from seeing much of the $28 billion they project to bring in.
Instead of rushing through an untested provision with vast unintended consequences, we encourage Congress to work with our collection of State Associations to find language that works for all stakeholders, keeping America at the forefront of crypto innovation.
New Jersey Blockchain Council
Dr. Gordon Jones
William H. Kleindienst