Venture Capital firm a16z Calls US Infrastructure Bill “Flawed”
Venture capital firm, Andreessen Horowitz (a16z) has issued an open letter, suggesting amendments to the bipartisan, $1.2 trillion worth, US infrastructure bill, that plans to radically increase crypto tax and raise nearly $28 billion from cryptocurrency tax enforcement measures. Latest tax regulations will also allow the U.S. Internal Revenue Service (IRS) to demand all digital asset subsidiaries to report any transactions involving digital assets.
A decentralized network provides economic opportunities
Andreessen Horowitz (a16z) issued an open letter calling for amendments to the bill on 4th August. The company argued that the decentralized crypto sphere presents the nation with exceptional opportunities for a truly democratic financial structure. Furthermore, A16z said the citizens should not be deprived of tomorrow’s employment opportunities in a prosperous economy, merely because of today’s “flawed bill”.
“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.
Alternative to China’s centralized control
Additionally, the firm has also pitched to introduce an alternative to China’s centralized control on digital finances. It stated that a decentralized economic network will not only provide credibility but also enable 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.”
A16z agreed that the current crypto tax provisions are vague and require alterations. The letter acknowledged that the current regulations can potentially “sweep in non-intermediaries, such as network validators and software developers,” and would interrupt innovation processes by imposing impractical reporting requirements on those groups.
- Standard Chartered Predicts Bitcoin Could Drop Below $100K Amid U.S.–China Trade Tensions
- Rising Demand for Verifiable Crypto Ownership Drives Launch of Trezor Safe 7
- Robinhood Lists Binance Coin as BNB Outperforms BTC, ETH, SOL YTD By Over 30%
- Bitget Partners With Google Developer Group On Hackathon To Support AI Innovation
- Can Cardano Save Kadena? Hoskinson Reaches Out After KDA Token Plunges 60% Amid Shutdown
- XRP Price Classical Pattern Points to a Rebound as XRPR ETF Hits $100M Milestone
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
