White House Backs Crypto Proof-of-Work Bill

The White House has again appeared in the news, this time with two-phased crypto-related bills supporting crypto tax amendment and proof-of-work consensus mechanism.

The amendment of the Infrastructural bill initiated by Senator Mark Warner, Rob Portman, and Kyraten Sinema has seen the endorsement of the White House. The amendment competes with a bill introduced by the pro-cryptos such as Senator Rom Wyden, Cynthia Lummis, and Pat Toomey.

A white House economic reporter Jeff Stein was quick to reveal the development late night Thursday said, “White House is coming out formally in support of Warner-Portman-Sinema crypto amendment, implicitly against the Toomey-Wyden-Lummis plan.”

Later, the White House’s deputy press secretary, Andrew Bates, issued an official statement:

The Administration is pleased with the progress that has yielded a compromise sponsored by Senators Warner, Portman, and Sinema to advance the bipartisan infrastructure package and clarify the measure to reduce tax evasion in the cryptocurrency market.

While this amendment endorsement looks positive,  it has generated reactions in the crypto community.

A reaction from Jerry Brito, CEO of Coin Center, rubbishes the endorsement of the Proof-of-work consensus mechanism over others. He said, “The White House is endorsing proof-of-work over all other consensus mechanisms to be enshrined in law … It is disastrous. It only excludes proof-of-work mining. And it does nothing for software devs.”

In his reaction, Coin Center’s director of communications, Neeraj K. Agrawal, noted that chosen consensus would have huge consequences on crypto.

Among lawmakers who reacted after the endorsement is Senator Wyden, who tweeted that “The Warner-Portman-Sinema amendment provides a government-sanctioned safe harbour for the most climate-damaging form of crypto tech, called proof-of-work. It would be a mistake for the climate and for innovation to advance this amendment.”

Per a report by MSNBC’s Kyle Griffin, the Senate Majority Leader Chuck Schumer “has filed a motion tonight to end debate and move toward a final vote on the bipartisan bill. The final vote is likely on Saturday.”

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