Lawmakers from both parties in the U.S. have asked the Treasury to rethink their proposed digital-assets tax system. The lawmakers support crypto delegates and lawyers. They agree that the tax plan is unsafe and an inappropriate overstep.
Patrick McHenry, head of the House Financial Services Committee (R-NC), worked on a project with Ritchie Torres (D-NY) and seven others.
Furthermore, Patrick McHenry (R-NC), Head of the House Finance Committee, and Ritchie Torres (D-NY) directed a team of nine legislators. They labeled the tax report rule as “impractical.”
According to the publicized letter sent to Lily Batchelder, the Assistant Secretary of the U.S. Treasury Department, on Nov 10, the plan’s ambiguity could have negative results.
The announcement stated on Wednesday, “The planned rule’s vague idea of a “Broker” for digital assets, unclear explanation of a “Digital Asset”, and extremely short comment period could stop many digital asset activities in the U.S.”
Crypto Tax Proposal Sparks Revision Talks
In August, someone suggested changes to the crypto tax, and the public feedback period that ended on Monday received over 124,000 remarks.
In an earlier sound-only meeting, industry queries made by authorities showed the tax idea might be “subject to change.” We can anticipate the final draft in the following months, and it might heed some of the industry’s disapproval.
The main issue lies in how the plan portrays hosted wallet providers, payment firms, some decentralized finance (DeFi) units, and others as “brokers” for tax records.
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“The ‘Broker’ term is overly wide and could include groups lacking typical broker features,” the letter states.