The Senate Finance Committee Chairman Senator Ron Wyden is looking into the activities of crypto firms that are taking advantage of tax breaks provided by the Opportunity Zone program.
The senator is worried that a “lack of safeguards and transparency measures” in the Opportunity Zone program could be exploited by the crypto companies.
He raised these concerns in letters sent to one individual and two firms. Wyden wants clarification on the companies’ provision of the necessary support for low-income communities based on the rules stipulated in the program.
The Program Was Launched To Create Jobs Across Communities
The program was implemented in 2017 and aimed to provide tax incentives to firms that drive private investments and create jobs for economically unstable communities.
He sent the letters to HCVT LLP, Argo Blockchain, and Redivider Blockchain Opportunity Zone Fund. He asked the firms to respond to several questions he asked regarding the projects they are running for their clients are currently investing in.
Wyden Seeks For Clarity
Senator Wyden is leading the new push for compliance clarity to ensure that crypto mining companies carry out their social responsibilities by dolling out incentives to economically distressed communities. The senator has requested that the companies send updates regarding the engagement level in the Opportunity Zone program in the community. He sought to know how many jobs the companies have created through the program, which is why the program was introduced.
In July last year, Chief Executive Officer of Argo Blockchain Peter Wall revealed that the location of the Dickens County mining facility of his company was chosen specifically due to the abundance of renewable energy and its inclusion in the Opportunity Zone. He stated at the time that the mining firm could help towards the development of the community and its economic infrastructure through the creation of jobs.
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Source: https://insidebitcoins.com/news/senate-fears-that-crypto-firms-could-exploit-opportunity-zone-program-for-tax-break