US legislators offer a plan to ‘address’ the infrastructure law’s crypto reporting mandate
The bill seeks to delay mandatory reporting obligations until 2026 and to alter the definition of broker. A bipartisan group of senators in the United States has submitted legislation to modify the tax reporting requirements that will take effect as a result of the recently approved infrastructure package.
Reps. Patrick McHenry and Tim Ryan proposed the Keep Innovation in America Act, which would amend the definition of a broker in HR 3684, President Joe Biden’s bipartisan infrastructure package signed into law on Monday. The bill proposes deferring compulsory reporting requirements — including the need that digital asset transactions valued at more than $10,000 be reported to the Internal Revenue Service — until 2026.
Additionally, the law would exclude some taxpayers from reporting digital asset transactions if they have no reason to know the information requested from wallet holders. Brokers, according to the law, are neither “miners and validators, hardware and software engineers, or protocol creators.”
The Keep Innovation in America Act stipulates that “consistent and accurate reporting on digital asset transactions is required.” “Congress must strive to ensure the digital asset industry’s legal and regulatory clarity. A clear set of laws of the road stimulates innovation and technology.”
McHenry continued: “[The bill] contains provisions requiring the reporting of digital assets, which threaten to drive inventors and entrepreneurs offshore. We can correct these ill-conceived standards and guarantee they are consistent with the real operation of this new technology.”
Representatives Kevin Brady, Ro Khanna, Tom Emmer, Eric Swalwell, Warren Davidson, Darren Soto, Anthony Gonzalez, and Ted Budd have already endorsed the proposed legislation, as have crypto advocacy organizations such as Coin Center and the Blockchain Association. However, several senators have attempted to forge their own legislative road to change the infrastructure law’s crypto wording, with Ron Wyden and Cynthia Lummis introducing a proposal and Ted Cruz introducing a separate measure last week.
The Keep Innovation in America Act was introduced in response to a group of Democratic legislators signing a letter to House Speaker Nancy Pelosi on Tuesday. The letter also calls for amendments to the infrastructure law’s definition of a broker, citing worries about the impact on the US market and the country’s ability to stay up with technological progress.
On Wednesday, during a Joint Economic Committee meeting, a bipartisan group of senators discussed the role of digital assets in government. Tim Massad, the former chairman of the Commodity Futures Trading Commission, said at the event that the United States may adopt a central bank digital currency as a feasible answer for enhancing the country’s payment infrastructure.
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