6174-A – 6173 – CP2000 letters – Senate bill 1025 Exploring Cryptocurrency Market PlaceSeptember 15, 2019
The United States Congress is considering nearly 20 bills which are related to blockchain technology, each during different stages.
Jason Brett, Founder, and CEO of Value Technology Foundation, opine that “Of all the bills, only one bill is of particular consideration to cryptocurrency users.”
An executive order signed by U.S. President Donald Trump in the last year banned U.S. citizens, organizations, and permanent residents from buying, holding or trading the petro. The Petro is the cryptocurrency, which was created by the Venezuelan government and it was backed by the vast oil reserves of the nation.
Venezuelan Central Banks have experienced several decades of hyperinflation, and they came up with the Petro to “circumvent U.S. sanctions.”
Senate Bill 1025, will necessarily make law by an executive order signed by the U.S. president. It has attracted nearly ten sponsors consisting of Democrats and Republican Senators. Senate Bill 1025 has the most number of sponsors when compared to other 20 blockchain bills.
The Venezuelan petro can be obtained and spent on goods across the world, just like one spends a Bitcoin or any other cryptocurrency.
Senate bill 1025, officially is known as The Venezuela Emergency Relief, Democracy Assistance, and Development Act of 2019, or the VERDAD Act in short.
According to Brett, a previous lead associate, this bill, when passed, could set forth a dangerous precedent for other cryptocurrencies.
This Bill was proposed by Democratic senator Robert Menendez of New Jersey in April. If this bill is approved, the Petro would be the first kind of cryptocurrency, which would be banned in the United States. This would further ease out future bans on cryptocurrencies.
Brett further stated, “The implications for this are huge because it could be a Bitcoin or some other cryptocurrency inserted into this language.” He also implied that this could be a roadmap to ban a particular cryptocurrency.
The IRS is meanwhile blindly behind cryptocurrency traders. The IRS has sent more than 10,000 warning letters to suspected cryptocurrency holders and traders concerning misreporting of digital assets and associated tax returns.
The 6174-A, 6173 and CP2000 letters have been delivered to cryptocurrency traders across the country, and several of them are seeking tax help due to fear of penalties. The IRS does not have all the information, and the letters that they are sending are extremely misleading, and several cryptocurrency traders are inaccurately being targeted.