Senator Ron Wyden, Chairman of the Senate Finance Committee, is investigating the activities of crypto companies that are taking advantage of the Opportunity Zone program’s tax benefits.
The senator is concerned that the Opportunity Zone program’s “lack of protection and transparency procedures” might be misused by cryptocurrency firms.
He expressed his worries in letters to one person and two businesses. Wyden is seeking clarity on the corporations’ supply of critical assistance for low-income communities in accordance with the program’s regulations.
The programme, which began in 2017, aims to give tax breaks to businesses that stimulate private investment and generate employment in economically depressed areas.
He addressed HCVT LLP, Argo Blockchain, and the Redivider Blockchain Opportunity Zone Fund. He invited the businesses to answer a series of questions he asked about the projects they are now working on for their customers.
Senator Wyden is leading a new campaign for regulatory clarification to ensure that cryptocurrency mining businesses fulfil their social duties by providing incentives to economically challenged regions. The senator has demanded that the corporations provide updates on the amount of participation in the Opportunity Zone initiative in their neighbourhood. He wanted to know how many jobs the firms had generated as a result of the initiative, which is why it was implemented.
In July of last year, Argo Blockchain Chief Executive Officer Peter Wall said that the site of his company’s Dickens County mining facility was selected particularly because of the availability of renewable energy and its presence in the Opportunity Zone. He remarked at the time that the mining company might contribute to the growth of the community and its economic infrastructure by creating employment.
