The Chamber of Digital Commerce, a group advocating for the blockchain and digital asset industry, has appealed to House and Senate leadership to consider H.R. 1414, also known as the Keep Innovation in America Act, which Carbone believes would provide clarity for participants in the digital asset market. Cody Carbone, Chief Policy Officer of the Chamber of Digital Commerce, expressed these concerns in a letter dated January 5, specifically addressing the uncertainty surrounding a new Internal Revenue Service (IRS) digital asset reporting requirement.
According to Carbone's letter, he emphasized an "urgent need" for Congress to deliberate on H.R. 1414. This urgency stems from the fact that nearly one-fifth of Americans hold digital assets and many U.S. organizations are involved in the crypto industry, which boasts a value exceeding $1 trillion. As of January 1, 2024, Carbone stressed that the necessity to consider H.R. 1414 has become "more urgent."
On January 1, an amendment to the Internal Revenue Code took effect, stipulating that any individual receiving a crypto transaction amounting to $10,000 or more must report this transaction to the IRS. Carbone argued that this amendment has unintentionally introduced numerous compliance challenges. He highlighted miners and validators who receive block rewards for their work but may not have a specific entity listed as the sender when reporting transactions as an example of these challenges. According to Carbone, there is currently no guidance from the IRS on how to comply with this new rule.
A blog post from non-profit organization Coin Center stated that recipients of crypto transactions valued at $10,000 or more are required to include details such as the sender's name, address and Social Security number when reporting these transactions to the IRS. Failure to do so within 15 days could potentially result in felony charges.
Carbone asserted that H.R. 1414 would "address these ambiguities" and aid the United States in remaining "a fertile ground for technological advancement and economic prosperity."
The Chamber expressed its concerns in a post, stating, "You just received $10,000 USD worth of crypto. And 15 days later, you're charged with a felony? Congress needs to fix this ASAP."
Chairman of the House Financial Services Committee, Rep. Patrick McHenry (R-N.C.), along with Rep. Ritchie Torres (D-N.Y.) and House Majority Whip Tom Emmer (R-Minn.), reintroduced the bipartisan Keep Innovation in America Act in March 2023. McHenry stated that 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." He also warned against misguided policy and regulatory overreach threatening to push this dynamic industry overseas.
The Chamber of Digital Commerce is a trade association based in Washington, D.C., according to CryptoSlate. The organization supports the use of digital assets and blockchain technology, working closely with policymakers, regulators, and industry participants. The Chamber advocates for a legal landscape that promotes growth and innovation within the digital asset industry.
