A bill was introduced in the U.S. House this week that seeks to update the digital asset reporting provisions in the Infrastructure Investment and Jobs Act, which has been signed into law.
The bill, the Keep Innovation in America Act, alters the definition of a broker in the law and proposes changes to brokers’ reporting of digital assets.
“The nonsensical digital asset reporting requirements included in the Infrastructure Investment and Jobs Act of 2021 will send crypto innovation, and opportunities oversees, leaving the United States far behind in the global race to lead in the next phase of the digital economy,” Majority Whip Rep. Tom Emmer (D-MN), one of the bill’s sponsors, said. “I’m proud to continue to support Chair McHenry as a cosponsor of the Keep Innovation in America Act to clarify the U.S. Tax Code’s definition of ‘Broker’ so the future of the digital asset ecosystem reflects American values.”
Another one of the bill’s sponsors, U.S. Rep. Patrick McHenry (R-NC), chair of the House Financial Services Committee, sent a letter to Treasury Secretary Janet Yellen in December urging her to prioritize rulemaking under the digital asset reporting provisions of the law and delay the effective date so market participants can conform to any new requirements.
“America can either cement our position as the leader of the global financial system, or we can allow this wave of innovation to pass us by,” McHenry said. “The digital asset ecosystem holds tremendous potential to bring more Americans into our financial system and serve as the building blocks of the next generation of the internet. Unfortunately, misguided policy and regulatory overreach threatens to push this dynamic industry—and its potential benefits—overseas. The Keep Innovation in America Act will fix the poorly constructed digital asset reporting requirements included in the Infrastructure Investment and Jobs Act.”
The bipartisan bill is also sponsored by U.S. Rep. Ritchie Torres (D-NY).
“I am proud to be working in a bipartisan manner to cosponsor the Keep Innovation in America Act,” Torres said. “The cryptocurrency industry is constantly growing and evolving, which means Congress must be able to respond in a way that provides balanced and appropriate oversight and protects consumers without stifling the next generation of competition and entrepreneurship. This common-sense legislation, which has earned the support of key industry and market participants, brings digital asset reporting requirements in line with the current ecosystem and offers much-needed legal and regulatory clarity to help cement our continued place as the global leader in crypto technology and innovation.”