December 5, 2021

House of Representatives Submits Bill To Amend Cryptocurrency Tax Reporting In Infrastructure Bill

In the latest effort by lawmakers, the proposed bill will modify what it means to be a broker and postpone the start of the new reporting requirements to 2026. Members of both sides of the House aim to rectify the tax reporting requirements that will be enforced due to the new infrastructure bill. Members of the House of Representatives Patrick McHenry and Tim Ryan proposed the “Keep Innovation In America Act.” The legislation will see the change in how a broker is defined in HR3648 as part of the infrastructure bill signed at the beginning of this week.

Breakdown Of The New Bill

The bill will also see the push back of the reporting requirements to 2026. Trying to relieve people of the reporting requirement when the party can not possibly know the required information because of lack of access to private wallets. All of these sentiments are expressed in a tweet by the Financial Services GOP verified account yesterday evening. It said in the tweet that the House Representatives had proposed the bill to modify the reporting demands and clarify the definition of brokers to protect innovators.

The bill details that certain other players in blockchain technology and development should not and can not be classified as brokers. The new legislation also accepts that tax reports on digital assets are necessary but believes that legislation should aim for accuracy in this goal. Republican leader Patrick disclosed that the provisions of the infrastructure bill signed earlier this week could see big players in the cryptocurrency and blockchain industry look elsewhere to conduct business. He believes that the requirements can be amended to suit how the industry works.

The bill has the backing of 8 other senators, including Darren Soto, who recently was a signatory to a published letter to House Speaker Nancy Pelosi requesting attention to these issues. Cryptocurrency advocacy groups are not left out and are also pushing for the bill to be passed. Senators are also trying to make separate bills to make amendments to the signed Infrastructure bill. The Senate saw a proposal from two Senators and a bill placed before the house within this week alone. 

Other Efforts By Legislators This Week

The latest effort by house representatives follows the published letter by Darren Soto and other house democrats. The letter also aimed at achieving the same goals and expressing concerns about how the new infrastructure bill will affect the competitive technological growth of the United States. There was a joint hearing on Wednesday to discuss the workings of blockchain technology to enable legislators to understand better and define the role of the government in this new space. 

At the gathering, a suggestion was made for the country to introduce a Central Bank Digital Currency. It was stated that this could help make payments and transactions more effective in the country. At the moment, if pursued, it will add the United States to the list of other countries considering or developing CBDCs. The UK has already started consulting experts and might see them roll it out later this decade.