A bipartisan group of US lawmakers has introduced a law to change the tax reporting requirements that will take effect due to the recently signed infrastructure bill.
Representatives of the House of Representatives Patrick McHenry and Tim Ryan have introduced the “Keep Innovation in America Act”, which would modify the definition of “broker” as defined in HR 3684, the bipartisan infrastructure law signed by President Joe Biden on November 15. The bill proposes to delay mandatory disclosure requirements, which include that digital asset transactions over USD 10,000 must be reported to the Internal Revenue Service, from 2024 to 2026.
I introduced this bipartisan bill w / @RepTimRyan to fix the new poorly constructed #digitalasset reporting requirements.
The Keep Innovation in America Act will provide clarity to innovators deploying the next generation of internet #technology. https://t.co/cAMWsPoiD8
– Patrick McHenry (@PatrickMcHenry) November 18, 2021
I introduced this bipartisan bill with Tim Ryan to fix the new poorly constructed digital asset disclosure requirements.
What’s more, The bill will exempt certain taxpayers from reporting digital asset transactions in cases where they have no reason to know the wallet holders’ information that would otherwise be required. Under the bill, “miners and validators, hardware and software developers, and protocol developers” are not brokers.
“It is necessary to declare consistently and accurately about digital asset transactions”, affirms the Keep Innovation in America Act. “Congress must work to bring legal and regulatory certainty to the digital asset industry. Clear rules encourage technology and innovation.”
McHenry added:
“[La ley] includes disclosure requirements on digital assets that threaten to push innovators and entrepreneurs abroad […] We can fix these poorly constructed standards and ensure that they are compatible with the actual operation of this new technology. “
The proposed legislation already has the support of representatives Kevin Brady, Ro Khanna, Tom Emmer, Eric Swalwell, Warren Davidson, Darren Soto, Anthony González and Ted Budd, as well as cryptocurrency advocacy groups like Coin Center and the Blockchain Association. However, some senators have attempted to create their own legislative avenue to amend the cryptocurrency language in infrastructure law, with a proposal from Ron Wyden and Cynthia Lummis, as well as a separate bill from Ted Cruz, introduced this week.
The “Keep Innovation in America” bill comes after a group of Democratic lawmakers signed a letter on Nov. 16 to House Speaker Nancy Pelosi. The letter also urges a review of the definition of a broker in the infrastructure law, raising concerns about the effect on the US market and how the country will keep up with technological innovation.
On Wednesday, a bipartisan group of lawmakers met at a Joint Economic Committee hearing to debate the role of digital assets in government. Tim Massad, former chairman of the Commodity Futures Trading Commission, said at the meeting that the United States could introduce a central bank digital currency as a possible solution to improve the country’s current payment systems.
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