U.S. House Committee Wants To Delay Crypto Tax Implementation

Newly appointed Rep. McHenry, the committee’s new chair, suggests Secretary Yellen in his letter to delay the crypto law’s implementation until additional information about the parties it would affect was available.

Replacing members of various House committees was a result of the midterm elections held in the US in November. The United States House Committee on Financial Services was one of them.

In January 2023, Patrick McHenry, the tenth Congressional District representative for North Carolina, will take over the office. The House Committee on Financial Services will also have McHenry as its chair.

McHenry, the committee’s new chair, wrote a letter to Janet Yellen, the department of Treasury secretary. The letter made reference to the Infrastructure Investment and Jobs Act, often known as the Bipartisan Infrastructure Bill.

The word “broker” is one of this bill’s contentious elements. Insiders in the industry think this is an extensive word that might expose crypto miners and producers of crypto wallets to tax reporting laws that are improper for them.

The report states:

Section 80603 is poorly drafted. As such it could be wrongly interpreted as expanding the definition of a ‘broker’ beyond custodial digital asset intermediaries.

In addition, the letter drew attention to other provisions of the bill that might impact the cryptocurrency sector, such as how the Department of the Treasury has used the term “cash.” Rep. McHenry claims that by doing this, all crypto receivables exceeding $10,000 would be subject to the bill’s regulations, and additional reporting requirements would apply to the industry.

It was intriguing to learn that the Treasury was sues earlier this year for this specific provision by the crypto advocacy group Coin Center.

Statement From The Treasury

Furthermore, Other lawmakers also brought up related issues in 2022. However the Department of Treasury still needs to react to the letter. The Treasury sent a letter to numerous congress members in response.

Appreciate the Treasury Department affirming that crypto miners, stakers and those who sell hardware and software for wallets are not subject to tax reporting obligations. As I have said from the start, this requirement only applies to brokers.

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In its letter, Treasury noted the objections to including crypto miners in the legislation. But it makes clear that these organizations would not be subject to IRS reporting requirements.

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