U.S. Lawmakers Plan to Reform Crypto Taxes

According to Punchbowl news, U.S. lawmakers are planning to reintroduce the Keep Innovation in America Act, a bill that aims to reform the taxation of cryptocurrencies. Co-led by U.S. Rep. Patrick McHenry (R-N.C.) and Ritchie Torres (D-N.Y.), the bill seeks to narrow the definition of a crypto broker for tax purposes to “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 believe that the current reporting requirements for crypto companies are stifling innovation in the industry. The bill argues that “the reporting requirements under current law require digital asset market participants to adhere to standards that are incompatible with this technology’s operation,” and that this could hinder the development of digital assets and their underlying technology in the United States.

The Keep Innovation in America Act would also relieve miners, validators, and hardware and software developers from the information collection requirements under the Infrastructure Investment and Jobs Act.

The bill was first introduced in March 2021 and is being reintroduced in the hopes of promoting innovation in the crypto sector. By optimizing the taxation of cryptocurrencies, lawmakers hope to encourage the development of digital assets and their underlying technology within the United States.

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