A bipartisan group of US lawmakers has introduced legislation to change the tax filing requirements that will go into effect due to the recently signed infrastructure bill.
House Representatives Patrick McHenry and Tim Ryan inserted the Keep Innovation in America Act, which change the definition of corridor as defined in HR 3684, the bipartisan infrastructure bill enacted by President Joe Biden on November 15. The bill proposes to delay mandatory reporting requirements, which include digital asset transactions worth more than $ 10,000 to be reported to the Internal Revenue Service, from 2024 to 2026.
I introduced this bipartisan bill with @RepTimRyan to fix the new badly built #digitalasset information requirements.
The Keep Innovation in America Act will provide clarity to innovators implementing the next generation of the Internet. #technology. https://t.co/cAMWsPoiD8
- Patrick McHenry (@PatrickMcHenry) November 18, 2021
Additionally, the bill would exempt certain taxpayers from reporting digital asset transactions in cases where they have no reason to know information from portfolio holders that would otherwise be required. According to the bill, "miners and validators, hardware and software developers, and protocol developers" are not intermediaries.
"Consistent and accurate reporting is needed on digital asset transactions," states the Keep Innovation in America Act. โCongress must work to provide legal and regulatory certainty to the digital asset industry. Clear traffic rules encourage technology and innovation. "
McHenry added:
"[The law] includes digital asset reporting requirements that threaten to drive innovators and entrepreneurs abroad [...] We can correct these poorly constructed standards and make sure 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 Gonzรกlez, and Ted Budd, as well as cryptocurrency advocacy groups including the Coin Center and the Blockchain Association. . However, certain senators have been trying to create their own legislative avenue to amend the crypto language in the infrastructure law, with a proposal from Ron Wyden and Cynthia Lummis, as well as a separate bill from Ted Cruz, introduced this week.
The introduction of the Keep Innovation in America Act follows a group of Democratic lawmakers signing their names in a Nov. 16 letter to House Speaker Nancy Pelosi. The letter similarly urges revisions to the definition of a corridor in infrastructure law, raising concerns about the effect on the US market and how the country will keep up with technological innovation.
Related: US lawmakers urge CFTC and SEC to form joint task force on digital assets
On Wednesday, a bipartisan group of lawmakers met at a Joint Economic Committee hearing to discuss the role of digital assets in government. Tim Massad, former chairman of the Commodity Futures Trading Commission, told the meeting that the US. introduce a central bank digital currency as a possible solution to improve the country's payment systems.
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