US lawmakers planning to reintroduce bill aimed at fixing crypto reporting requirements: Report
Representatives Patrick McHenry and Ritchie Torres reportedly plan to reintroduce the Keep Innovation in America Act to address reporting requirements in the infrastructure law.
A group of United States lawmakers is reportedly planning to reintroduce legislation to change the reporting requirements for certain taxpayers involved in crypto transactions.
According to a March 7 report from Punchbowl News, Representatives Patrick McHenry and Ritchie Torres plan to reintroduce the Keep Innovation in America Act. McHenry was one of the leading voices behind the previously proposed bill in an effort to change the definition of a broker as defined in the U.S. infrastructure law — President Joe Biden signed the legislation in November 2021.
Under a draft of the bill, the requirement for brokers to report on digital asset transactions worth more than $10,000 to the Internal Revenue Service would be pushed from 2024 to 2026. In addition, “miners and validators, hardware and software developers, and protocol developers” would not be considered brokers.
Some lawmakers identified potential conflicts as the infrastructure bill was being considered in Congress in 2021 and attempted to amend the legislation. Many have still criticized the law for setting impossible crypto reporting requirements for firms and individuals.
McHenry and Torres have reportedly included provisions in the revised bill to limit the U.S. government’s ability to define the term “digital asset.” According to Punchbowl, a bipartisan group of seven other House members has signed on as co-sponsors for the legislation, including pro-crypto Representative Darren Soto.
The draft bill states:
“Consistent and accurate reporting on digital asset transactions is necessary. Congress must work to bring legal and regulatory certainty to the digital asset industry. Clear rules of the road fosters technology and innovation.”
Related: IRS reminds taxpayers of crypto income reporting ahead of 2022 filing
McHenry took over as chair of the House Financial Services Committee from Representative Maxine Waters at the start of the 118th Congress in January. In his leadership role, he has helped set up a subcommittee on digital assets, financial technology and inclusion, which is scheduled to hold a hearing on March 9.
