Congressman Tim Ryan Leads Bipartisan Legislative Fix to New Digital Asset Reporting Requirements
Washington, DC—Congressman Tim Ryan (OH-13) today introduced the Keep Innovation in America Act, alongside Congressman Patrick McHenry (NC-10) and a bipartisan group of lawmakers. The legislation will fix the digital asset reporting provisions in the Infrastructure Investment and Jobs Act, signed into law by President Biden this week, and provide clarity to technology innovators and entrepreneurs.
Read more on the Keep Innovation in America Act here.
"Blockchains, cryptocurrencies, and decentralized finance may still be relatively new and evolving, but Congress must recognize that these technologies are some of the most important innovations to come along in a generation,” said Congressman Tim Ryan. “We have to figure out how to balance consumer protections and reasonable oversight while simultaneously providing these technologies and companies with the necessary space they need to grow, innovate and democratize the financial sector. I’m committed to finding that balance, and I believe the McHenry-Ryan legislation is the best path to get us there. This legislation, in tandem with the Chinese Government’s recent ban of cryptocurrency transactions, gives us an opening to further enhance our nation's role in the development of innovative blockchain technologies. Providing clear rules for both consumers and developers of digital assets is essential to taking advantage of this opportunity."
“American innovation has reached an inflection point,” said Congressman Patrick McHenry. “On the one hand, we have the Infrastructure Investment and Jobs Act that President Biden signed into law on Monday. It includes digital asset reporting requirements that threaten to push innovators and entrepreneurs overseas. This would leave the U.S. as a passive observer of a rapidly evolving industry. On the other hand, we can fix these poorly constructed standards and ensure they are compatible with how this new technology actually works. The Keep Innovation in America Act will address these issues and provide additional clarity on the scope of these requirements. This would signal to innovators and entrepreneurs that we are committed to growing the next generation of the internet here at home. I’m proud to work with a bipartisan group of my colleagues on this critical legislation, which has broad support from industry and market participants.”
A broad coalition of industry and market participants support the bipartisan Keep Innovation in America Act:
“Cryptocurrency users are not just willing to pay their fair share of taxes, but for years we’ve been asking the Treasury Department for guidance on third-party reporting from cryptocurrency exchanges,” said Jerry Brito, Executive Director of the Coin Center. “Unfortunately, the reporting rules rushed through in the infrastructure bill massively overreach. We thank Rep. McHenry for leading this bipartisan effort to fix the law by requiring reporting from middlemen, not from miners, developers, or individuals."
“We applaud Congressman McHenry’s bipartisan efforts to clarify the overly-broad and unclear language targeting crypto in the infrastructure bill,” said Kristin Smith, CEO of the Blockchain Association. “This bill, along with continued efforts by other Members of Congress to clarify the crypto provision language, are indicative of the need for a solution. We thank Congressman McHenry, along with his concerned colleagues, for their dedication to ensure the US remains the world-leader in crypto innovation.”
“We thank Reps. McHenry and Ryan for prioritizing innovation and clarifying digital assets language in the bipartisan infrastructure bill,” said the Crypto Council for Innovation (CCI.) “The Keep Innovation in America Act is a welcomed first step towards potentially correcting faulty definitions in the infrastructure bill. We look forward to working with Reps. McHenry and Ryan to advocate for clear and fair crypto regulations that position America as a global, innovative leader.
CCI continued: “Crypto is the defining technology of the coming decades, and the U.S. has an opportunity to embrace it with smart policy. We stand united with the crypto community in helping lawmakers on both sides of the aisle see this and are confident we can work together with Congress to create common-sense rules that reflect the unique attributes of crypto and support the growth of the American economy.”
“We are supportive of this bipartisan effort,” said the Electronic Frontiers Foundation. “EFF along with many in the technical and civil liberties community have strong concerns with the cryptocurrency provisions that have been recently enacted under the bipartisan infrastructure law. The brief window we have before the law is implemented and Americans may lose their financial privacy gives Congress the opportunity to refine the provisions to strike the right balance.”
"With the digital assets industry still in its early stages, it is crucial that federal policy help foster - not stifle - its potential,” said Thomas Aiello, Director of Federal Affairs for the National Taxpayers Union. “Unfortunately, overly burdensome and broad rules recently signed into law could have perverse consequences for both investors and other stakeholders in the cryptocurrency sector. Thankfully, the bipartisan Keep Innovation in America Act would provide innovators more regulatory clarity needed to usher in transformative benefits to our economy. NTU is proud to support this legislation and we call for its swift consideration."
“The Keep Innovation in America Act acknowledges that the digital asset broker provision contained in the infrastructure bill was flawed and urgently requires amendment by Congress,” said Michelle Bond, CEO of the Association for Digital Asset Markets. “We need a balanced, thoughtful regulatory framework for digital assets and the future of finance. Our tax code should be as focused and detailed as possible and enable American innovators to easily comply with the law."
“I am proud to support Ranking Member McHenry’s bill that will significantly improve the digital asset reporting requirements recently enacted in President Biden’s infrastructure package,” said Grover Norquist, President, Americans for Tax Reform. “The Infrastructure Investment and Jobs Act imposed burdensome reporting requirements on virtually every participant within the cryptocurrency ecosystem, including miners and software developers, and impinged on consumers’ privacy. McHenry’s bill, the Keep Innovation in America Act, strengthens privacy protections, and limits which individuals would be required to submit tax return information to the IRS. This bipartisan legislation will significantly improve the status quo and should be swiftly passed into law to preserve the United States’ position as a global leader in the innovation of digital assets and blockchain technology.”
“The Chamber of Digital Commerce commends Ranking Member McHenry for listening to the concerns of the crypto community,” said Perianne Boring, founder and CEO of the Chamber of Digital Commerce. “This legislation will protect innovation in the United States and strengthen our status as a leader in blockchain technology. The legislation takes a needed to step to protect consumer privacy by undoing a potentially intrusive part of the infrastructure bill that threatens treat crypto users like criminals and force crypto to share private information to engage in routine transactions.”