A two-part group in Congress has introduced the amendment law on tax reporting, which will enter into force together with the recently signed Infrastructure Act.
House Representatives Patrick McHenry and Tim Ryan introduced the America Innovation Act, which would change the definition of a broker as defined in HR 3684, a two-part infrastructure law signed by President Joe Biden in the law on Monday. The bill proposes to postpone mandatory reporting requirements, including that transactions with digital assets over $ 10,000 must be reported to the IRS from 2024 to 2026.
In addition, the law will exempt certain taxpayers from the need to report digital asset transactions in cases where they had no reason to receive information from wallet owners that would otherwise be required. According to the bill, “miners, auditors, hardware and software developers and protocol developers” are not intermediaries.
The US Preservation of Innovation Act states that “there is a need for consistent and accurate reporting of digital asset transactions.” Congress must work to ensure legal and regulatory security in the digital asset industry. Clear rules of conduct drive technology and innovation. ”
[The law] includes reporting requirements for digital assets that threaten to drive innovators and entrepreneurs abroad. […] We can fix these poorly designed standards and make sure they match how this new technology actually works. ”
The proposed law has already received support from representatives of Kevin Brady, Ro Hann, Tom Emer, Eric Swalwell, Warren Davidson, Darren Soto, Anthony Gonzalez and Ted Budd, as well as advocacy groups for cryptocurrencies including the Coin Center and the Blockchain Association. However, some senators have tried to create their own legislative way to change the language of encryption in the Infrastructure Act proposed by Ron Wieden and Cynthia Loomis, as well as in a separate Ted Cruise law presented this week.
The introduction of the Keep America Innovative Act comes immediately after a group of Democratic lawmakers signed their names in a letter to House Speaker Nancy Pelosi on Tuesday. The letter also called for a revision of the definition of an intermediary in the Infrastructure Act, which raises concerns about the impact on the US market and how the country will keep pace with technological innovation.
Related topics: US lawmakers demand that Commodity Futures Trading Commission (CFTC) and SEC (SEC) form a joint working group on digital assets
On Wednesday, a two-part group of legislators met at a hearing in the Joint Economic Committee to discuss the role of digital assets in the government. Tim Massad, former head of the Commodity Futures Trading Commission, said at the meeting that the US could offer a central bank’s digital currency as a possible solution to improve the country’s payment systems.