Coinbase CEO Brian Armstrong praised the US lawmakers decision To revive a bill that seeks to clarify tax reporting for cryptocurrencies.
A bill to simplify encryption asset reports requirements
innovation innovation in The America Act is a bipartisan bill in In March 2021, Reps. Patrick McHenry and Richie Torres revived to tackle digital asset reports requirements.
According to the Coinbase CEO, the bill will clarify cryptocurrency tax reporting, which has been obfuscated by President Joe Biden’s Investment in Infrastructure and Jobs Act.
Biden did give overly broad definition of encryption asset Brokers and “badly constructed” reports requirements for digital assets.
its reports requirements Try to fit into the list costReporting the rule framework for traditional financial Cryptocurrency markets assets Without taking into account the difference between the two ecosystems.
Comes a newly revived McHenry and Torres bill against background of mounting regulatory audit on Cryptocurrency threatens to drive out innovators and investors overseas.
Outdated laws hinder innovation
Crypto-friendly legislators want To reintroduce Keep in America acts because they think so current Reporting standards hinder innovation in encryption sector.
McHenry, Chairman of the Board of The House Financial Services Committee, issued a strict warning Earlier this week, he said the United States can either strengthen its leadership position in the global financial system or let new cropped of innovations pass before.
Coinbase’s Brian Armstrong has talked a lot about the geopolitical benefits of Embrace encryption.
According to him, by adopting cryptocurrency, the United States may modernize it financial system and consolidate its position as global giant.
Armstrong believes that if the United States issued dollar stablecoin on blockchain, it will act as a fait accompli digital currency for Transfers and international currency transferswhich guarantees dollar remains the global Reserve currency on And off blockchain.
A new bill exempts miners from IRS requirements
For every Americans for Tax reform (ATR), if passed, McHenry’s bill would remove the requirement for Cryptocurrency miners and validators and software developers to submit the transaction information to the Internal Revenue Service (IRS).
According to the organization, another section of I’ll bill also Eliminate the requirement to disclose crypto transactions over $10,000 to the IRS. Instead, the bill forces the US Treasury to find ways of treatment digital assets like Paper currency.
The Treasury previously stated that “auxiliary parties” are not required to transfer the transaction information to the IRS. Still, players in Industry feels a new The leadership in the department may easily adjust this situation.
Therefore, ATR believes that the only foolproof answer is to explicitly note that non-brokers are not required To submit transaction data to the IRS.