Republican Patrick McHenry: Treasury Department Needs Regulations On Digital Asset

Rep. Patrick McHenry is requesting the Treasury Department, as part of last year’s infrastructure package, to release clearer digital asset reporting regulations and to postpone compliance obligations for the new rules.

McHenry, the incoming chair of the House Financial Services Committee, wrote in a letter addressed to Treasury Secretary Janet Yellen:

“We urge Treasury to immediately publish the rules directed under Section 80603 and delay the effective date of Section 80603 to allow market participants to conform to any new requirements.”

Last year, he introduced his own measure to amend the infrastructure package’s digital asset reporting rules.

Patrick McHenry called the section of the Infrastructure Investment and Jobs Act that broadly defined brokers of digital assets in order to increase tax collection from crypto transactions poorly drafted and warned that it could be wrongly interpreted as expanding the definition of a ‘broker’ beyond custodial digital asset intermediaries.

“These provisions were the subject of much debate. Any rulemaking or guidance that fails to appropriately interpret these provisions will damage the privacy of American taxpayers and stifle innovation through rising compliance costs and unnecessary regulatory burdens.”

Finally, McHenry asked the US Treasury Department to have specific rules to avoid situations that hurt the economy as well as investors.

“Given the significance of these issues, Treasury cannot evade the formal rulemaking process by issuing an interpretive final rule or merely issuing guidance,” he wrote.

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