Bipartisan legislation designed to “fix” digital asset reporting requirements was reintroduced in the House of Representatives by House Financial Services Committee Chair Rep. Patrick McHenry (R-N.C.) and Rep. Ritchie Torres (D-N.Y.).
The Keep Innovation in America Act modifies provisions of the Infrastructure Investment and Jobs Act, which was signed into law in November 2021. The bipartisan legislation codifies guidance developed by the Treasury Department following the passage of the Infrastructure Investment and Jobs Act, which clarify and enhance some of the definitions in the original legislation.
“America can either cement our position as the leader of the global financial system, or we can allow this wave of innovation to pass us by,” McHenry said. “The digital asset ecosystem holds tremendous potential to bring more Americans into our financial system and serve as the building blocks of the next generation of the internet…. The Keep Innovation in America Act will fix the poorly constructed digital asset reporting requirements included in the Infrastructure Investment and Jobs Act. I’m proud to lead this bipartisan legislation to provide desperately needed clarity for innovators and entrepreneurs.”
“I am proud to be working in a bipartisan manner to cosponsor the Keep Innovation in America Act,” Torres said. “The cryptocurrency industry is constantly growing and evolving, which means Congress must be able to respond in a way that provides balanced and appropriate oversight and protects consumers without stifling the next generation of competition and entrepreneurship. This common-sense legislation, which has earned the support of key industry and market participants, brings digital asset reporting requirements in line with the current ecosystem and offers much-needed legal and regulatory clarity to help cement our continued place as the global leader in crypto technology and innovation.”
The legislation would also require the Treasury secretary, in consultation with the Financial Crimes Enforcement Network and representatives from other interested parties, to research or develop standards relating to digital asset use and conduct a study on the effect of expanding the definition of cash to include any digital asset.