Hickory Sun

North Carolina Representative Patrick McHenry has criticized the Biden administration's approach to digital asset regulation, describing its "partisan rulemakings" as detrimental to the digital asset ecosystem. He proposed the Keep Innovation in America Act as a "solution" for crypto tax reform. McHenry expressed these views in a December 27 post on X.

"The outgoing Biden Admin continues to ignore the will of Americans with partisan 11th hour rulemakings," said McHenry, U.S. Representative. "Today, it's an assault on the digital asset ecosystem. The bipartisan Keep Innovation in America Act is the solution for a comprehensive tax framework for crypto brokers."

According to a letter from the House Financial Services Committee, there is concern over certain provisions of tax reporting regulations for digital asset "brokers." The Committee urged the U.S. Treasury and Internal Revenue Service (IRS) not to finalize these provisions, highlighting potential regulatory burdens on decentralized finance platforms and non-custodial entities. These entities reportedly lack customer relationships and are unable to provide necessary information for reporting, as said in an X post by the Financial Services GOP.

Rep. McHenry's x post | X

The Keep Innovation in America Act aims to address issues related to digital asset reporting requirements outlined in the Infrastructure Investment and Jobs Act. The Act seeks to clarify definitions such as "broker" and establish appropriate reporting requirements for digital asset transactions. It also addresses privacy concerns associated with broad definitions of "cash" and "digital assets," according to the House Financial Services Committee.

The House Financial Services Committee is responsible for overseeing economic issues including banking, housing, insurance, and securities. It also manages monetary policy, international finance, and efforts against terrorist financing. The Committee monitors key agencies like the Federal Reserve and the Treasury Department, as detailed on its About webpage.

McHenry represents North Carolina's 10th Congressional District, which includes parts of nine counties in the state. Currently serving his tenth term, he is Chairman of the House Financial Services Committee in the 118th Congress. Previously, McHenry served as Republican Leader and Vice Chairman of the committee, according to House.gov.