Democratic Senator Ron Wyden is looking into the activities of cryptocurrency companies that take advantage of the tax breaks offered by the Opportunity Zone program..
Senator Wyden’s main concern stems from the perception that some crypto firms may be taking advantage of what he called “a lack of safeguards and transparency measures” in the Opportunity Zone program.
The concerns were raised in letters he sent to two companies and one individual. You want to know how they are providing the required reciprocal support for low-income communities, as stipulated in the program rules.
The Oregon senator wrote letters to cryptocurrency miners Argo Blockchain and Redivider Blockchain and accounting firm HCVT Opportunity Zone specialist accountant Blake Christian.
The Opportunity Zone program was implemented in 2017 and was designed to offer tax incentives to companies that create jobs and drive private investment in economically disadvantaged communities.
In his letters to Argo and Redivider, Wyden requested information on the degree of participation of each company in the Opportunity Zone program and when they began participating in it.. It also asks them to provide information on the number of jobs their operations have created, which is one of the main contributions to the Common Good for which the program was created.
Democratic Senator Ron Wyden is investigating the activities of crypto companies that take advantage of the tax breaks offered by the Opportunity Zone program..
Last July, Argo Blockchain CEO Peter Wall specifically stated that the location of his company’s mining facility in Dickens County, Texas was specifically chosen for its inclusion in the Opportunity Zone and abundance of renewable energy.. At the time, he told Cointelegraph that he believed the facility could “invigorate the community through job creation,” which is one of Senator Wyden’s main concerns.
Wyden questioned Redivider’s real reason for operating within the Opportunity Zone based on a February 2022 interview with Huffpost in which CEO Tom Frazier said his company “100%” would have opened a mining facility with or without tax exemption. Currently, only accredited investors can invest in Redivider’s $250 million Opportunity Zone fund.
For Christian, Senator Wyden requested information on the Opportunity Zone crypto mining projects that his clients have invested in and how many jobs those companies are creating.. In this letter, Wyden brought up the same Huffpost interview in which Christian said his clients’ investors were just “looking for a way to save some money because they’re about to get punched in capital gains taxes.” short term.”
This hints that your clients may simply be looking for a way to offset short-term capital gains taxes by investing in mining operations that receive a tax break.
There has yet to be a response from Argo, Redivider, or Blake Christian.
Wyden’s new push to seek clarity in the crypto industry could be a sign of what Blockchain Association CEO Kristen Smith called a “bipartisan wave change on cryptocurrencies.” in the Senate in a tweet of March 26. According to his analysis, there is now “progressive, libertarian, moderate, conservative and liberal” support in both chambers to take crypto seriously.
1/ If you’ve been paying attention the past few weeks, there’s a lot of evidence of a bipartisan vibe shift on crypto. Contrary to the media narrative that pushes a polarized split on the issues, here’s what I’ve seen…
— Kristin Smith (@KMSmithDC) March 25, 2022
1/ If you have been paying attention in the last few weeks, there is plenty of evidence of a bipartisan wave change on cryptocurrencies. Contrary to the media narrative that forces a polarized divide on the issues, here’s what I’ve seen…
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