US congressmen are proposing a new bill aiming to fix the digital asset reporting requirements provided for in the Infrastructure Investment and Jobs Act that President Joe Biden recently signed into law.
The $1.2 trillion infrastructure legislation, which will take effect in 2024, includes a clause that amends the definition of “broker” in the tax code to extend the reporting requirements to entities in the crypto industry, including miners and software developers.
The Keep Innovation in America Act, which was introduced by a bipartisan group of legislators on Thursday, aims to modify section 80603 of the infrastructure law that contains the provision on crypto-assets reporting.
The proponents, Representatives Patrick McHenry (R-N.C.), Ted Budd (R-N.C.), Tom Emmer (R-Minn.), Tim Ryan (D-Ohio), Warren Davidson (R-Ohio), Anthony Gonzalez (R-Ohio), Kevin Brady (R-Texas), Ro Khanna (D-Calif.) and Eric Swalwell (D-Calif.), argue that without this legislative fix, the crypto reporting requirements will have long-lasting and harmful impacts on next-generation internet technology.
“Section 80603 does not work in the current digital asset ecosystem. Consistent information reporting on digital asset transactions is necessary. However, regulations must match the technology to ensure it does not stifle entrepreneurship, innovation, or impede privacy rights.”
To fix issues with section 80603, the bill proposes, among others, to define the word “broker” so that only those who are actually in the business of brokering will be covered by the reporting requirements. It also seeks to clarify the information that a broker needs to record when transferring digital assets to a non-broker account.
Congressman Brady, House Committee on Ways and Means chair and bill proponent says,
“Digital assets are here to stay, and this bill ensures that cryptocurrency reporting requirements are meaningful and effective.
This common-sense update addresses the problems caused by the new requirements just signed into law by President Biden, which are untested, blunt instruments, and risk handing unnecessary information to the IRS. I’m proud to support this bipartisan bill.”
Earlier this week, Senators Cynthia Lummis (R-Wyo.) and Ron Wyden (D-Ore.) also proposed a similar law to amend the crypto provisions of the newly-approved infrastructure bill.
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