Bankless The State of Crypto Regulation | Jake Chervinsky (SotN 8/17)
Aug 18, 2021
Jake Chervinsky, General Counsel at Compound Finance and strategic advisor to Variant Fund, dives deep into the evolving landscape of crypto regulation. He discusses his influential role in amending the US Infrastructure Bill, particularly its surprising tax provisions. The conversation highlights the importance of community advocacy in Washington D.C., emphasizing the need for a cohesive regulatory framework. Chervinsky offers a hopeful outlook on future regulations, showcasing the resilience of decentralized finance amid rising tensions between innovation and regulation.
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Blindsided by the Bill
- The infrastructure bill's crypto tax provision blindsided the Blockchain Association.
- They had worked with Senator Portman for months on crypto's inclusion in the bill.
Overly Broad Broker Definition
- The infrastructure bill expands the definition of "broker" to include almost everyone in crypto.
- This means miners, liquidity providers, and even NFT creators could face IRS reporting requirements.
Treasury's Negotiation Tactic
- Treasury's overreach with reporting requirements might be a negotiation tactic.
- They aim to secure maximum authority, making it harder to challenge their broad interpretation.