The Retain Innovation in America Act was proposed for the first time in March of 2021.
Tuesday’s Punchbowl news reported that U.S. lawmakers intend to reintroduce a bill to reform the tax treatment of cryptocurrencies.
The Keep Innovation in America Act, co-sponsored by U.S. Representatives Patrick McHenry (R-N.C.) and Ritchie Torres (D-N.Y.), would narrow the definition of a cryptocurrency broker for tax purposes to “any person who (for consideration) stands ready in the ordinary course of a trade or business to effect sales of digital assets at the direction of their customers,” according to a proposal of the bill.
Legislators seek to advance this change because they feel that the present reporting rules for corporations hinder innovation in the cryptocurrency industry.
The present legal reporting requirements for the digital asset market “force digital asset market participants to comply to norms that are incompatible with the functioning of this technology,” the bill states. This will impede the growth of digital assets and their underlying technology in the United States, diverting their development elsewhere.
The law said that miners, validators, and hardware and software developers have no motivation to gather the information mandated by the Infrastructure Investment and Jobs Act.
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