Rep. Patrick McHenry calls proposed crypto tax rules an ‘attack on the digital asset ecosystem’


Patrick McHenry, Chairman of the House Financial Services Committee, commented on newly proposed crypto taxation rules on Aug. 25.

The IRS, along with the U.S. Treasury, proposed those taxation rules earlier in the day. The new rules would broadly require crypto brokers to report the same tax information that brokers for securities and other financial instruments currently do.

McHenry has criticized the proposed requirements as overbroad, writing:

“The notice … is another front in the Biden Administration’s ongoing attack on the digital asset ecosystem. … Numerous lawmakers of both parties [have] made clear that any proposed rule must be narrow, tailored, and clear.”

McHenry said the Infrastructure Investment and Jobs Act, introduced by the Biden administration in 2021, requires such clarity in legislation.

How To Get Free Crypto  

He acknowledged that the proposal is still in the proposal stage, adding that he is pleased to see a delayed effective date and exemptions in the proposal text.

McHenry went on to urge President Joe Biden’s government to “end its effort to kill the digital asset ecosystem” and cooperate with Congress on crypto legislation.

He also promoted his own bipartisan legislation, the Keep Innovation in America Act, as an alternative. That bill would ensure that, for tax reporting purposes, the term “broker” is extended only to companies that broker digital assets. It would exclude cryptocurrency miners, node operators, and hardware operators from the broker category.

Reports from Bloomberg suggest that the IRS and Treasury’s proposal, by contrast, would include DeFi and NFT platforms while excluding companies involved in mining and staking.

Coinbase Banner  

McHenry has pro-cryptocurrency reputation

McHenry, a Republican and U.S. Representative for North Carolina, has earned a reputation as a pro-crypto legislator. He has backed various other cryptocurrency-related bills, including the Clarity for Payment Stablecoins Act of 2023, the Digital Tokens Act of 2021, and the Ransomware and Financial Stability Act of 2021.

McHenry has also commented on numerous recent developments in the crypto industry, including PayPal’s decision to introduce a stablecoin and the regulatory response to BlackRock‘s recent spot Bitcoin ETF application.

Go to Source
Author: Mike Dalton

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.