Coinbase CEO Brian Armstrong is the latest crypto figure to come out against the wording of the proposed changes to cryptocurrency taxation in the United States.

Tweeting on Wednesday, Armstrong stated that the provisions included in the crypto taxation proposal could have a "profound negative impact" on the U.S. crypto space and could force digital innovation to motility overseas.

As previously reported by Cointelegraph, amendments to crypto tax rules were a concluding-infinitesimal addition to the $1-trillion infrastructure deal currently before the United States Senate.

The Coinbase CEO, like many other opponents of the proposal, faulted the broad language of the neb'south wording. According to Armstrong, the pecker extends the definition of the term "broker" to anyone who facilitates a digital asset transfer.

Indeed, this broad-based definition has seen several critics of the bill saying non-crypto brokerage entities such equally miners and software developers could exist brought under onerous revenue enhancement obligations.

"This makes no sense," Armstrong tweeted, referring to the broad banker definition in the bill, adding, "Smart contracts, for example, are non companies, and cannot be modified to collect KYC info or issue 1099s. They are only software running on the blockchain that anyone can employ."

The Coinbase CEO stated that policymakers accept a responsibleness not to hinder innovation in America. Earlier in August, Galaxy Digital CEO Mike Novogratz panned politicians and regulators in the U.S. for declining to do their homework on crypto before enacting laws and regulations.

Related: Mike Novogratz blasts United states of america officials for poor grasp of crypto manufacture

Armstrong chosen on U.Due south. crypto proponents to become behind amendments proposed by pro-cryptocurrency Senators such as Ron Wyden, Patrick Toomey and Cynthia Lummis, calling for a narrower definition of crypto intermediaries.

Earlier proposing the amendment, Senator Toomey had earlier called for miners and software developers to be exempted from the crypto tax reporting requirements specified in the neb.

Armstrong also joined the chorus of crypto proponents urging Americans to contact their elected representatives to button for the aforementioned amendments.