US Lawmakers Introduce Bill to Make Change in Crypto Requirements

House Representatives Patrick McHenry and Tim Ryan have introduced the Keep Innovation in America Act to change the infrastructure bill’s crypto section.

House Representatives Patrick McHenry and Tim Ryan have introduced the Keep Innovation in America Act. It proposes to make various changes in the cryptocurrency-related section of the recently signed bipartisan infrastructure bill by US President Joe Biden. 

The concerned bill proposes to push back the mandated reporting requirements from 2024 to 2026. The mandated reporting requirements require any US citizen to declare transactions involving digital assets worth over US$10,000. Rep. Patrick McHenry tweeted:

"I introduced this bipartisan bill w/ @RepTimRyan to fix the new poorly constructed #digitalasset reporting requirements.

The Keep Innovation in America Act will provide clarity to innovators deploying the next generation of internet #technology."

Reports say that the Keep Innovation in America Act would change the definition of a broker as defined in HR 3684. The bill says that "miners and validators, hardware and software developers, and protocol developers" are not brokers. 

The bill would reportedly exempt taxpayers from reporting transactions of digital assets where they don’t have any reason to know information from holders of wallets. The Keep Innovation in America Act says:

"Consistent and accurate reporting on digital asset transactions is necessary... Congress must work to bring legal and regulatory certainty to the digital asset industry. Clear rules of the road fosters technology and innovation."

Rep. McHenry went on to add:

"[The law] includes digital asset reporting requirements that threaten to push innovators and entrepreneurs overseas." We can fix these poorly constructed standards and ensure they are compatible with how this new technology actually works.

Other prominent representatives who support this proposed legislation are Kevin Brady, Ted Budd, Anthony Gonzalez, Darren Soto, Warren Davidson, Eric Swalwell, Tom Emmer, Ro Khanna, and many more. Crypto advocacy groups such as the Blockchain Association and Coin Center are already in support of this proposed legislation. 

Some senators, such as Ron Wyden, Cynthia Lummis, and Ted Cruz, have also proposed changes. While Ron Wyden and Cynthia Lummis have proposed amending the cryptocurrency language in the infrastructure law, Ted Cruz has introduced a separate bill this week.