{"id":14087,"date":"2023-11-16T08:03:52","date_gmt":"2023-11-16T08:03:52","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=14087"},"modified":"2023-11-16T08:03:54","modified_gmt":"2023-11-16T08:03:54","slug":"members-of-congress-urge-revisions-to-treasurys-unworkable-digital-asset-tax-rules","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=14087","title":{"rendered":"Members of Congress urge revisions to Treasury&#8217;s \u2018unworkable\u2019 digital asset tax rules"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Several American lawmakers voiced their concerns to the U.S. Treasury regarding a proposed taxation scheme for digital assets in a Nov. 15 letter, citing its potential to stifle innovation and adversely affect the digital asset ecosystem.<\/p>\n<p>The letter specifically concerns taxation rules advanced by the Treasury on Aug. 25. In today\u2019s letter, lawmakers called the proposal \u201cunworkable\u201d and argued that the rules in their current form will prevent innovation and damage the digital asset ecosystem.<\/p>\n<p>Lawmakers warned that the new rules would expand the term \u201cbroker\u201d to apply to a wide variety of digital asset services, explicitly including DeFi services. They argued that this rule could apply even to DeFi platforms that do not ordinarily know the identity of their users and could require many digital asset services to file duplicate tax reports.<\/p>\n<p>Lawmakers further expressed concerns that an overly broad or ill-defined \u201cdigital asset\u201d term could include non-fungible tokens (NFTs) and payment stablecoins, potentially leading to regulatory complications. They argued that these assets should not be considered financial instruments or investment instruments, respectively.<\/p>\n<p>Lawmakers also called the comment period and implementation deadline \u201cunreasonably short.\u201d They asked for the deadline to be extended to Dec. 31, 2023.<\/p>\n<h2>Bipartisan letter<\/h2>\n<p>The bipartisan letter was signed by nine different lawmakers on both sides of the political aisle. It was headed by Chairman of the House Financial Services Committee Patrick McHenry and Representative Ritchie Torres. Other lawmakers who signed the letter include Majority Whip Tom Emmer and Representatives Warren Davidson, Eric Swalwell, Wiley Nickel, French Hill, Byron Donalds, and Erin Houchin.<\/p>\n<p>Despite recent developments, the debate surrounding digital asset taxation has been a contentious issue for some time. Many of the same lawmakers complained about the proposed tax rules in a January 2022 letter. McHenry also criticized the proposal this August, while others, such as the vocally anti-crypto Senator Elizabeth Warren, have called for faster implementation.<\/p>\n<p>Incidentally, several of the above lawmakers signed another letter today asking the Biden administration to provide information on Hamas\u2019 cryptocurrency funding. A House subcommittee also held a hearing on crypto\u2019s role in crime on the same day.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/members-of-congress-urge-revisions-to-treasurys-unworkable-digital-asset-tax-rules\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Several American lawmakers voiced their concerns to the U.S. Treasury regarding a proposed taxation scheme for digital assets in a Nov. 15 letter, citing its potential to stifle innovation and adversely affect the digital asset ecosystem. The letter specifically concerns taxation rules advanced by the Treasury on Aug. 25. In today\u2019s letter, lawmakers called the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14088,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-14087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/14087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14087"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/14087\/revisions"}],"predecessor-version":[{"id":14089,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/14087\/revisions\/14089"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/14088"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}