A few days after President Biden’s infrastructure bill was signed, a group of bipartisan lawmakers has introduced a bill to amend the crypto tax provision law.
The bill, going as “Keep Innovation in America Act,” seeks to clarify the definition of a crypto broker in the Infrastructure Investment and Jobs Act.
Who are the “Crypto Brokers” in the Bipartisan Infrastructure Law?
President’s Joe Biden infrastructure bill requires crypto brokers to notify the IRS directly of crypto transactions.
Of course, if the crypto brokers include all crypto exchanges, the community has valid reasons to try and fight the crypto tax provision. First, crypto investors will no longer be able to hide their gains. Moreover, crypto investors who hold currency in their crypto wallets will have the gains reported to the IRS prone to inaccuracies.
When investors have cryptocurrencies in their wallets, the exchanges will have a limited view on what was the initial payment for coins.
Thankfully, the crypto community has representatives that recognize the dire need for an amendment to the crypto tax provision law. The representatives are Kevin Brady (R-Texas), Anthony Gonzalez (R-Ohio), Patrick McHenry (R-N.C.), Warren Davidson (R-Ohio). Ted Budd (R-N.C.), Eric Swalwell (D-Calif). Ro Khanna (D-Calif), Tim Ryan (D-Ohio), and Tom Emmer (R-Minn.).
The representatives are seeking for provision of additional clarity with the “Keep Innovation in America Act.” Furthermore, together with the amendment of section 6050I in the tax code, the congressmen are also asking for recognition of the difference in the transactions between brokers and non-brokers.
The U.S. Could Scare Away Innovators with this New Bill
According to representative Patrick McHenry, the poorly constructed standards of the bipartisan infrastructure law could potentially scare away innovators and entrepreneurs from the U.S. The result would be that America would remain a passive observer of a rapidly evolving industry.
At the Senate, Senators Cynthia Lummis (R-Wyo.) and Ron Wyden (D-Ore) are also pushing for the protection of crypto investors. According to Lummis, it is vital to balance consumer protections while simultaneously according technology and companies’ reasonable space to grow.
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