Representative Patrick McHenry has joined with Representative Tim Ryan demanding that Secretary of the Treasury Janet Yellen clarify digital asset reporting requirements.
McHenry is the ranking member on the House Committee on Financial Services and Ryan is a Democrat. The two are the original co-sponsors of the “Keep Innovation in America Act,“ legislation that aims to provide guidelines for crypto reporting.
A letter has been sent to Secretary Yellen in advance of “expected preliminary guidance” on crypto reporting requirements. The missive is signed by multiple Democrats and Republicans in a bipartisan initiative.
The two Representatives state that “regarding the reporting requirements included in the Infrastructure Investment and Jobs Act. Section 80603 imposed reporting requirements on digital asset market participants that are incompatible with the technology’s operation and the privacy rights of users. As the Department develops rules and guidance for compliance with this Section, we believe that additional clarity is necessary for certain market participants. We ask that you look to the bipartisan bill, H.R.6006, the Keep Innovation in America Act, to ensure that any future guidance provides the necessary clarity to the digital asset ecosystem.”
Section 80603 was a controversial portion of the legislation that has raised the ire of digital asset industry participants as the language was deemed as too broad and undermining blockchain innovation in the US. The “ambiguous” language is said to allow the Department of Treasury the ability to “interpret who within the digital asset ecosystem qualifies as a “broker.” ”
Simultaneously, the Representatives state that Treasury has broad authority to define a digital asset.
To quote the letter addressed to Secretary Yellen:
“As nascent financial technologies develop, we must ensure requirements imposed on the digital asset ecosystem are both crafted and implemented in such a way to ensure the United States remains at the forefront of financial innovation. We believe consistent information reporting on digital asset transactions is necessary. However, it should not prevent these technologies and the ecosystem from continuing to flourish due to unclear regulations that only create uncertainty.”
