- Mark Cuban has warned of shutting down the crypto “growth engine” as debate rages over the infrastructure bill.
- The bill includes a provision designed to raise $ 28 billion through tighter oversight of crypto transactions.
- Cuban said getting too tough on crypto would be tantamount to shutting down e-commerce in 1995.
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Billionaire entrepreneur Mark Cuban has warned regulators against shutting down what he calls the crypto “growth engine”, saying it would be like banning e-commerce in 1995, as debate rages on over cryptocurrency taxes included in the $ 1,000 billion infrastructure bill.
Cuban, who believes a lot in cryptocurrencies, told the Washington Post: “Cutting off this engine of growth would be like stopping e-commerce in 1995 because people were afraid of credit card fraud. would never come back to. “
The Dallas Mavericks owner and “Shark Tank” star discussed the debate between crypto advocates and lawmakers over a section of the $ 1,000 billion Senate infrastructure bill that impacts the crypto industry.
As part of the fundraising bill’s provisions, new rules on reporting crypto transactions to the Internal Revenue Service plans to raise around $ 28 billion by encouraging the payment of more taxes. “Brokers” would be required to provide information on digital asset transfers.
The crypto industry pushed back hard against the provision, in part because cryptocurrency “miners” could fall under the definition of broker, placing heavy responsibilities on users who secure the network and create new coins.
Rights activists have also expressed concerns that cryptocurrency companies may need to start collecting much more information about who uses their services.
Cuba’s comments echo those of other cryptocurrency advocates who fear the impact the provision will have on the industry.
Jack Dorsey, CEO of Twitter and Square tweeted Sunday: “Forcing reporting rules on Americans who develop software and hardware, who operate and secure the network, or who run nodes to build resilience and efficiency, is an impossible demand that will only spur development and the exploitation of this critical technology outside of the United States. . “
Democratic Senator Ron Wyden and Republican Senators Pat Toomey and Cynthia Lummis have proposed a plan to exempt certain crypto users, such as minors, from the reporting requirement. But last-minute debates were scheduled to continue on Monday, ahead of the vote on the bill’s final adoption.