U.S. lawmakers are planning to reintroduce legislation in Congress that will reform the way %Cryptocurrencies are treated for tax purposes.
The bipartisan bill, titled “Keep Innovation in America Act,” is co-sponsored by Republican Representative Patrick McHenry and Democrat Ritchie Torres.
The proposed legislation would narrow the definition of a cryptocurrency broker for tax purposes to “any person who (for consideration) stands ready in the ordinary course of a trade or business to effect sales of %DigitalAssets at the direction of their customers.”
Lawmakers want to put this reform forward because they believe the current reporting requirements for companies are too broad and are hurting innovation in the crypto sector.
Representatives McHenry and Torres say they are worried that restrictive policies and excessive taxes in the U.S. are driving the development of %Blockchain technologies and cryptocurrencies outside America.
The legislation has a long way to go to receive approval in the U.S. House of Representatives and Senate.
Lawmakers in Washington, D.C. have been talking tough on cryptocurrencies following the $8 billion U.S. collapse last November of the FTX exchange, with many politicians calling for more restrictions and regulations on digital coins and tokens.
The reform bill also arrives as the U.S. Securities and Exchanges Commission (SEC) cracks down on cryptocurrencies and the companies behind digital assets.
The price of %Bitcoin ($BTC), the largest cryptocurrency by market capitalization, is currently at $22,400 U.S., up 35% so far in 2023.