Cryptocurrency Tax Law | U.S. lawmakers propose infrastructure amendment, delaying the implementation schedule for mandatory reporting and changing the definition of brokers

The United States recently passed a $1.2 trillion infrastructure bill, causing a stir in the cryptocurrency space. However, U.S. lawmakers have drafted an amendment bill to address the cryptocurrency provisions in the legislation, including delaying the implementation of mandatory reporting requirements for cryptocurrencies until 2026 and changing the definition of brokers.

The United States recently passed a $1.2 trillion infrastructure bill, causing a stir in the cryptocurrency industry. However, members of the U.S. Congress have drafted an amendment bill to address the cryptocurrency-related provisions in the legislation, including delaying the implementation of mandatory reporting requirements for cryptocurrencies until 2026 and altering the definition of brokers.

A bipartisan group in the U.S. Congress has proposed amendments to the cryptocurrency regulations. Representatives Patrick McHenry and Tim Ryan introduced the "Keeping America Innovative Act," which aims to change the definition of brokers in the infrastructure bill.

According to the infrastructure bill, digital asset transactions exceeding $10,000 must be reported to the Internal Revenue Service (IRS), but the lawmakers' amendment bill proposes to push back the enforcement date from 2024 to 2026.

Furthermore, the "Keeping America Innovative Act" will exempt certain taxpayers from reporting digital asset transactions, including "miners and validators, hardware and software developers, and protocol developers," as they are not considered brokers.

The "Keeping America Innovative Act" emphasizes the necessity of consistent and accurate reporting of digital asset transactions, but underscores that Congress must strive to bring legal and regulatory certainty to the digital asset industry, providing a "clear path for rules to promote technology and innovation."

The "Keeping America Innovative Act" has garnered support from lawmakers including Kevin Brady, Ro Khanna, Tom Emmer, Eric Swalwell, Warren Davidson, Darren Soto, Anthony Gonzalez, and Ted Budd. However, other lawmakers have also proposed their own amendments, including proposals from Ron Wyden and Cynthia Lummis, as well as a standalone bill introduced by Ted Cruz this week.

This article is authorized and reproduced from Horizon News Network