Cryptocurrency Mining Under Proposed U.S. Policy Changes By Cointelegraph

Cryptocurrency Mining Under Proposed US Policy Changes

Regulatory control of blockchains and cryptocurrencies is increasing. Cryptocurrency China mining ban to President Joe Biden Financial Markets Working Group, convened by Treasury Secretary Janet Yellen, the economic activities that support and are made possible by blockchains have become a major concern for policymakers. More recently, a provision in the project Infrastructures 2021 invoice amends the definition of broker to expressly include “any person who […] is responsible for regularly providing any service that transfers digital assets on behalf of another person.

The stated goal of this “miner as a broker” policy change is to improve the collection of cryptocurrency capital gains tax revenues by improving the ability of tax collectors to observe transactions. of cryptocurrency. Since cryptocurrency miners regularly validate transactions that transfer digital assets, such as cryptocurrencies, on behalf of cryptocurrency holders, these miners seem to meet this definition of a broker. Not surprisingly, a lot in the cryptocurrency industry raised concerns.

Ariel zetlin jones is Associate Professor of Economics at Carnegie Mellon University. He studies the interaction of financial intermediation and macroeconomics. Since 2016, Ariel has been studying the economics of blockchains – how economic incentives can be used to shape blockchain consensus and stable protocols as well as the economically important new centralized markets that currently support cryptocurrency trading. His research has been published in the American Economic Review, the Political economy journal and the Monetary Economics Journal.

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