• U.S. lawmakers are planning on reintroducing a bill that will reform the way crypto is treated for tax purposes.
• The Keep Innovation in America Act would narrow the definition of a crypto broker for tax purposes and help create more innovation in the sector.
• The current reporting requirements are hindering innovation in the crypto sector, and this bill aims to provide solutions.
U.S. Lawmakers Reintroduce Crypto Tax Reform Bill
What is the Keep Innovation in America Act?
The Keep Innovation in America Act is a bill introduced by U.S. Rep Patrick McHenry (R-N.C.) and Ritchie Torres (D-N.Y.) that 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.”
Why Was This Bill Introduced?
Lawmakers believe that current reporting requirements are hindering innovation within the crypto sector, so they want to put forward this reform to encourage further development within this space and shift its development outside of United States borders if needed.
Who Does This Affect?
This bill affects miners, validators, and custodians who currently have to adhere to standards incompatible with blockchain technology’s operation due to existing reporting requirements under current law.
What Are The Benefits Of This Bill?
The benefits of this bill include increased innovation within the US cryptocurrency sector, as well as shifting its development outside US borders if needed which could lead to economic growth within countries that use cryptocurrencies as well as those who develop them overseas.
The Keep Innovation in America Act has been introduced with hopes of reforming how cryptocurrencies are taxed in order to encourage more innovation within this space and potentially shift its development from US borders if necessary which could lead to economic growth both domestically and abroad.