Congressman Pushes Bill For Cryptomining Tax
The relationship between crypto users and tax is a rather complicated one and is often messy. For a long time, many countries did not have a concrete tax code for cryptocurrency holdings and left users confused about when and how to make payments on cryptocurrency earnings. Countries have since become a lot more educated about how crypto works and places such as Ohio in the United States now accept cryptocurrency as a method of tax payment and places in Europe now have a comprehensive tax code.
Now a US representative Tom Emmer intends to introduce the bill that would benefit crypto holders in terms of taxation. The bill in question will be for be those who hold cryptocurrency that was created as a result of a blockchain network split. This intended bill will be called the ‘Safe Harbour for taxpayers with forked assets’ bill and was first announced in 2018 but was then spoken about during a panel on the relationships between government and technology during consensus 2019.
This panel was attended by the congressman along with Chamber of Digital Commerce president and founder Perianne Boring, Fidelity Investments deputy general counsel David Forman, and CoinDesk advisory board chairman Michael Casey.
Talking The Talk
During the panel discussion, the congressman reiterated that he still in support of the bill as well as the development of cryptocurrency and blockchain. In his opinion, the current relationship between the blockchain industry and regulators is a strange one and the network is overly complex. He pointed to the SEC and CTFC as bodies that have bits and pieces of regulatory structure but have not completed the picture and thus, has stalled certain aspects of the industry.
The job of Congress, he says, is to get the government in line to enable the blockchain industry to thrive and create Innovations and opportunities. Rep. Emmer and his blockchain caucus which includes Representatives David Schweikert and Darren Soto, have stated that crypto miners should not be classified under the law as money transmitters.
It would prevent the IRS from penalizing holders who do not declare earnings that are made from network splits, at least until the IRS itself provides clear guidance on how such funds should be treated and might also prove inclusion for airswaps. Emmer also stated that Congress has work to do before It can properly advocate for the blockchain industry.
“You have members who have quite frankly a range of understanding and backgrounds, and there isn’t a lot of range when it comes to blockchain technology,” he said. “A lot of them have these preconceived notions, all they’ve ever heard of is the Silk Road.”
The US, according to Boring, is lagging behind in exploration of blockchain, especially compared to other places such as the EU which has invested 80 million Euros in various blockchain initiatives with a plan to invest over 340 million Euros over the next few years. China is also at the forefront of cutting-edge blockchain technology and the industry needs to make its voice heard within the United States to push for better regulation and more chances as progress.