Patrick

United

Impact

Change

<p>The post <a href="https://coinpedia.org/news/u-s-congress-and-finance-committee-lead-bipartisan-effort-for-revision-of-digital-asset-tax-reporting-regulations/">U.S. Congress and Finance Committee Lead Bipartisan Effort for Revision of Digital Asset Tax Reporting Regulations</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>In a landmark move, critical figures in the United States Congress, led by House Financial Services Committee Chairman Patrick McHenry and Congressman Ritchie Torres, have written a <a href="https://emmer.house.gov/_cache/files/1/e/1e5fb989-7fc2-4c14-85f1-3b82f11e0d38/45A1769B2F24FA8AD15E771E419AF171.congressionalletter.11.15.23.pdf">letter</a> to revise proposed digital asset tax reporting regulations. This bold stance comes as a response to the Treasury’s current approach, which lawmakers argue could stifle innovation and hinder the flourishing digital asset market in the U.S.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/NEW?src=hash&amp;ref_src=twsrc%5Etfw">#NEW</a>: Chairman <a href="https://twitter.com/PatrickMcHenry?ref_src=twsrc%5Etfw">@PatrickMcHenry</a> and <a href="https://twitter.com/RepRitchie?ref_src=twsrc%5Etfw">@RepRitchie</a> led a bipartisan letter urging treasury to revise proposed regulations for digital asset tax reporting requirements.<br><br>Read more <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f517.png" alt="🔗" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://t.co/NQO8HGnKoC">https://t.co/NQO8HGnKoC</a></p>— Financial Services GOP (@FinancialCmte) <a href="https://twitter.com/FinancialCmte/status/1724906523707789767?ref_src=twsrc%5Etfw">November 15, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<h2 class="wp-block-heading" id="h-unworkable-tax-reporting-requirements-a-call-for-change"><strong>Unworkable Tax Reporting Requirements: A Call for Change</strong></h2> 
<p>The bipartisan group, including notable figures like Congressmen Warren Davidson, Eric Swalwell, and Majority Whip Tom Emmer, voices strong concerns over the existing proposed regulations stemming from the Infrastructure Investment and Jobs Act (IIJA). They argue that the broad definition of a “digital asset Broker,” the lack of clarity in defining a “Digital Asset,” and a notably short comment period pose significant threats to the digital asset ecosystem’s survival in the U.S.</p> 
<h2 class="wp-block-heading" id="h-the-letter-s-key-highlights"><strong>The Letter’s Key Highlights</strong></h2> 
<ul> 
 <li><strong>Overly Broad Definition of ‘Broker’:</strong> The current proposal extends the definition of ‘broker’ to include entities engaged in facilitative services, encompassing a significant portion of digital asset entities, such as DeFi exchanges. This broad categorization could impose undue regulatory burdens on entities not traditionally considered brokers.</li> 
 <li><strong>Ambiguity in ‘Digital Asset’ Definition: </strong>The proposed regulations’ definition of ‘digital asset’ is seen as insufficiently nuanced, failing to differentiate between various types and uses of digital assets, including stablecoins and NFTs. This lack of distinction could have far-reaching implications on the usability and development of different digital assets.</li> 
 <li><strong>Short Comment Period and Implementation Timeframe:</strong> The letter also raises concerns about the rushed timeline for comments and implementation, arguing that it restricts meaningful feedback and strains market participants who require more time for compliance.</li> 
</ul> 
<h2 class="wp-block-heading" id="h-the-potential-impact-on-the-u-s-digital-asset-ecosystem"><strong>The Potential Impact on the U.S. Digital Asset Ecosystem</strong></h2> 
<p>This move by the bipartisan group highlights a critical juncture in the U.S. digital asset space. If implemented without changes, the current proposal could potentially drive a significant portion of the digital asset ecosystem away from the U.S., impacting innovation and market growth. The lawmakers urge the Treasury to reconsider and adjust the proposed regulations, advocating for a more balanced and workable tax reporting framework supporting growth and innovation within the digital asset sector.</p>

U.S. Congress and Finance Committee Lead Bipartisan Effort for Revision of Digital Asset Tax Reporting Regulations

Table of Contents

CoinPedia News

Other articles published on Nov 16, 2023

Binance Announces Support for Terra Classic (LUNC) Network Upgrade

Bitcoin Struggles to Break the $38,000 Resistance Level

Binance To Launch Crypto Exchange In Thailand With Thai Billionaire Sarath Ratanavadi

Polygon hits 2023 peak in transaction volume

Polkadot Price Prediction: Avalanche Price Grows 33.3% In a Week, Meme Moguls Next

Blockchain in Gaming Could Garner Significant Growth by 2032

Join our free newsletter for daily crypto updates!