• US lawmakers are pushing for the reintroduction of a bill that would reform how digital assets are evaluated for tax purposes.
• The bill is called the “Keep Innovation in America Act” and its introduction to the crypto sector will promote growth and transparency.
• Committee Chair Patrick McHenry and Rep. Ritchie Torres sponsored the bill in 2021, defining a crypto broker for tax purposes as someone who stands ready to effect sales of digital assets.
US lawmakers are pushing for the reintroduction of a bill responsible for reforming how digital assets are evaluated for tax purposes. The proposed legislation, titled „Keep Innovation in America Act“ is intended to encourage growth in the sector and increase transparency of operations within the blockchain sector.
The bill was first introduced by congressmen Ritchie Torres and Patrick McHenry in 2021, with an aim to differentiate between a „crypto broker“ and traditional brokers when it comes to taxation matters. It defines a crypto broker as any person who (for consideration) stands ready in the ordinary course of a trade or business to effect sales of digital assets at the direction of their customers.
Lawmakers argue that current provisions on crypto taxation included under the $1.2 trillion infrastructure bill signed in 2021 could impede innovation and growth within this industry if not reformed appropriately. The proposed changes would also help curb misguided policies or regulatory overreach that could otherwise hinder progress from being made within this space according to Committee Chair Patrick McHenry.
The regulation of digital assets like cryptocurrency has been hotly debated throughout recent years with different opinions arising from both sides – some observers believe stricter regulations might scare off potential investments while others say regulation is necessary if we want to see wider acceptance and adoption rates among major players such as SEC chair Gary Gensler who recently highlighted the need for better custody structures when dealing with cryptocurrencies such as Bitcoin or NFTs (non-fungible tokens).
In conclusion, US lawmakers are pushing forward changes which they feel will boost innovation within this sector while creating clear guidelines regarding taxation laws pertaining to cryptocurrencies such as Bitcoin or NFTs (non-fungible tokens). These measures should help ensure fair regulations which will ultimately help foster wider acceptance & adoption levels across different industries worldwide.