- Interview with Huffpost in which CEO Tom Frazier indicated his business 100% would have established a mining operation with or without the tax benefit, Wyden questioned Redivider’s genuine motivation for operating within the Opportunity Zone. Redivider’s $250 million Opportunity Zone fund is currently only open to authorized investors.
- Argo Blockchain CEO Peter Wall indicated in July that the location of his company’s mining operation in Dickens County, Texas, was chosen because of its participation in the Opportunity Zone and plenty of renewable energy.
- Senator Wyden’s major concern is that certain crypto businesses may be taking advantage of the Opportunity Zone program’s lack of protections and transparency procedures.
Senator Wyden’s current campaign for compliance clarification aims to ensure that economically challenged regions obtain promised advantages from cryptocurrency mining operations. Senator Ron Wyden, a Democrat, is looking into the operations of crypto firms that take advantage of the Opportunity Zone program’s tax benefits.
CEO Tom Frazier Indicated His Business 100% Would Have Established A Mining Operation
Senator Wyden’s major concern is that certain crypto businesses may be taking advantage of the Opportunity Zone program’s lack of protections and transparency procedures, as he put it. Through emails for 2 businesses as well as 1 person, he conveyed their concerns. He’d like to know how they’re delivering the essential reciprocal support for low-income neighborhoods as outlined in the program’s guidelines.
Senator Ron Wyden of Oregon sent letters to cryptocurrency miners Argo Blockchain and Redivider Blockchain, as well as an Opportunity Zone specialist accountant from HCVT Blake Christian. The Opportunity Zone programme was launched in 2017 with the goal of providing tax breaks to businesses that create jobs and attract private investment to economically challenged areas.
In his letters to Argo and Redivider, Wyden inquired about the extent to which each company participates in the Opportunity Zone programme, as well as when they started. He also wants them to share information on how many employment their operations have created, as this is one of the program’s main contributions to the Common Good. Senator Ron Wyden, a Democrat, is looking into the operations of crypto firms that take advantage of the Opportunity Zone program’s tax benefits.
Argo Blockchain CEO Peter Wall indicated in July that the location of his company’s mining operation in Dickens County, Texas, was chosen because of its participation in the Opportunity Zone and plenty of renewable energy. He told Cointelegraph at the time that he hoped the facility might reinvigorate the town through employment development, which is one of Senator Wyden’s key priorities.
Redivider’s $250 Million Opportunity Zone Fund Is Currently Only Open To Authorized Investors
Based on a February 2022 interview with Huffpost in which CEO Tom Frazier indicated his business 100% would have established a mining operation with or without the tax benefit, Wyden questioned Redivider’s genuine motivation for operating within the Opportunity Zone. Redivider’s $250 million Opportunity Zone fund is currently only open to authorized investors.
Senator Wyden wrote to Christian, requesting details on what crypto mining operations his clients are now investing in in the Opportunity Zone, as well as how many jobs those companies are producing. In this letter, Wyden referred to the same Huffington Post interview in which Christian stated that his customer investors were simply searching for a method to save some money They’re and are going to get hammered with quick investment profits taxation. This suggests that his clients may just be searching for a means to avoid short-term capital gains taxes by investing in tax-favored mining businesses. Argo, Redivider, and Blake Christian have not responded as of yet.
In a March 26 tweet, Blockchain Association Executive Director Kristen Smith described a bipartisan vibe shift on crypto in the Senate. Wyden’s new push for clarity in the crypto industry could be signs of what she called a bipartisan vibe shift on crypto in the Senate. According to her analysis, both houses now have progressive, libertarian, moderate, conservative, and liberal support for crypto.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/03/30/the-chairman-of-the-senate-finance-committee-is-looking-into-the-absence-in-protections-for-cryptocurrencies-tax-breaks/