U.S. lawmakers are planning on reintroducing a bill that will reform the way crypto is treated for tax purposes, Punchbowl news said on Tuesday.
The bill, called the Keep Innovation in America Act and co-sponsored by U.S. Rep. Patrick McHenry (R-N.C.) and Ritchie Torres (D-N.Y.), would 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,’’ a draft document of the bill said.
Lawmakers want to put this reform forward because they believe the current reporting requirements for companies are hindering innovation in the crypto sector.
"The reporting requirements under current law require digital asset market participants to adhere to standards that are incompatible with this technology’s operation," the bill said. "This will hinder the development of digital assets and its underlying technology in the United States, shifting its development outside the United States."
For example, miners and validators, hardware and software developers do not have reason to collect the information required under the the Infrastructure Investment and Jobs Act, the bill added.
The bill was first introduced in March 2021.
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