New bill looks to solve the problems and salvage crypto from government inefficiencies.
Solution on the Horizon
The most enormous infrastructure bill in recent United States history became law on Monday, Nov. 15th, upon the signature of President John Biden. While the sheer effort of passing such a bill is applaudable, it remains severely flawed in its approach to cryptocurrency.
As of November 19th, several Congressmembers have presented a new bill that address the shortcomings of the now codified Infrastructure Investment and Jobs Act. Many of the DC based voices across Crypto Twitter chimed in to update US based users on the crucial next steps.
“The [recently passed] bill has three main flaws: – the broker definition, which could force nearly everyone in crypto to do tax reporting – the digital asset definition, which could apply to anything on a blockchain – the cash transaction report expansion, which is the infamous 6050I provision,” tweeted, Jake Chervinsky, Head of Policy at the Blockchain Association on Nov. 18th.
Chervinsky has confirmed––in a 21-part thread––that the new bill, the ‘Keep Innovation in America Act,’ has been proposed with key adjustments to the brokerage definition to exclude miners, developers, and others from needing to behave like large financial institutions. Take is from another well connected DC based crypto lobbyist, Jerry Brito Executive director of Coin Center:
“A comprehensive bipartisan bill has just been introduced in the House to fix EVERYTHING wrong with the infrastructure bill’s crypto tax provision–including the unconstitutional §6050I individual reporting mandate.”
The Treasury Department still ultimately remains the final interpreter of any language, as noted by Chervinsky in his thread. Despite have a sour reputation toward crypto, the Treasury Department preemptively clarified it would use a ‘narrow’ definition of broker, if needed back in August when the Infrastructure bill initially passed the Senate.
The new bill appears to be potential solution to the consequential bill signed by Biden on Monday. However, this ‘Up Only’ season in crypto, the optimism is riding high.
“The fight doesn’t stop here, either. No matter what happens in Congress, Treasury will eventually do public notice-and-comment rulemaking to define the scope of the new reporting requirements,” added Chervinsky. “We—all of us—will have an opportunity to make our voices heard. We will be LOUD.”
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Source : bsc.news
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