Seven additional bipartisan House legislators, including pro-crypto Congressman Darren Soto, have co-sponsored the measure.
Reports say that a group of US politicians plans to introduce legislation that changes the way some taxpayers who deal in cryptocurrencies have to report their income.
Punchbowl News reported on March 7 that Representatives Patrick McHenry and Ritchie Torres intend to propose the Keep Innovation in America Act.
McHenry was one of the main proponents of the previously proposed measure to amend the definition of a broker in the U.S. infrastructure law.
President Joseph Biden signed the bill into law in November 2021.
The deadline for brokers to report digital asset transactions worth more than $10,000 to the Internal Revenue Service would be extended from 2024 to 2026, according to a draft of the bill.
Moreover, “miners and validators, hardware and software developers, and protocol developers” are not seen as brokers.
While the infrastructure bill was being discussed by Congress in 2021, several members saw possible conflicts and moved to change the proposal.
Nonetheless, many have criticized the law’s cryptocurrency reporting requirements as being unworkable for businesses and individuals.
According to reports, McHenry and Torres have incorporated clauses in the new bill that restrict the government’s power to define “digital assets.”
Punchbowl reports that seven more bipartisan House lawmakers, including pro-crypto Congressman Darren Soto, have signed on as co-sponsors for the bill.
The proposed law states:
“Consistent and accurate reporting on digital asset transactions is necessary. Congress must work to bring legal and regulatory certainty to the digital asset industry. Clear rules of the road fosters technology and innovation.”
In January of the 118th Congress, McHenry took over as head of the House Financial Services Committee from Congressman Maxine Waters.
In his capacity as a leader, he helped establish a subcommittee on digital assets, financial technology, and inclusion, which will have a hearing on March 9.