Bitcoin Fans Are Suddenly a Political Force

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Bitcoin Fans Are Suddenly a Political Force
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A usually fractious coalition of investors, exchanges, financiers and social-media influencers like Ashton Kutcher and Elon Musk joined forces to battle a tax provision for digital currencies

A clash over tax rules for digital currencies like bitcoin turned into a political coming-of-age moment for the cryptocurrency industry, galvanizing a usually fractious coalition of investors, exchanges, financiers and social-media influencers.

In public, Ashton Kutcher, Elon Musk and Square Inc. Chief Executive Jack Dorsey brought the Twitter heat over a provisionseeking to expand and strengthen tax enforcement of crypto transactions. That helped prompt tens of thousands of followers to call members of Congress. Behind the scenes, lobbyists, trade-group officials and executives at crypto companies hopped on Google Meet every few hours to coordinate Congressional outreach and tracked legislative contacts in a shared spreadsheet.

The group enlisted the help of Sens. Ron Wyden , Pat Toomey and Cynthia Lummis , who pushed for a more industry-friendly approach. It even convinced the author of the original cryptocurrency language in the bill, Sen. Rob Portman , to narrow the scope of who is considered a broker of digital assets. But that campaign failed when a single senator blocked a change over an unrelated matter.

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