U.S. Rep. Tom Emmer (R-MN), the new co-chair of the Congressional Blockchain Caucus, plans to unveil three pro-growth proposals to hasten the advancement of blockchain technology and digital currencies.
“The United States should prioritize accelerating the development of blockchain technology and create an environment that enables the American private sector to lead on innovation and further growth, which is why I am introducing these bills,” Rep. Emmer said on Sept. 21.
Rep. Emmer, who provided draft texts of the three proposals, will unveil the Blockchain Regulatory Certainty Act, the Safe Harbor for Taxpayers with Forked Assets Act, and a Resolution Supporting Digital Currencies and Blockchain Technology.
“Legislators should be embracing emerging technologies and providing a clear regulatory system that allows them to flourish in the United States,” the congressman said.
The Blockchain Regulatory Certainty Act would provide a safe harbor from licensing and registration for certain non-controlling blockchain developers and providers of blockchain services, according to a draft of the bill.
These specific blockchain-related entities — which include so-called miners that validate network integrity and multisignature providers of asset security — shouldn’t need to register as a money transmitter because they never control consumer funds, according to Rep. Emmer’s statement.
The Resolution Supporting Digital Currencies and Blockchain Technology would express the support of Congress for the industry and its development in the United States, according to the draft text.
Similar to it involvement in the Internet, the U.S. government should maintain minimal involvement with the industry, but provide a consistent and simple legal environment, according to Rep. Emmer.
The Safe Harbor for Taxpayers with Forked Assets Act of 2018 would provide temporary safe harbor for the tax treatment of hard forks of convertible virtual currency in the absence of administrative guidance, according to Emmer’s draft.
The bill also would define several terms. For instance, digital assets is a new and emerging asset class of digital, virtual and crypto currencies that’s also known as cryptocurrencies. The term ‘‘forked convertible virtual currency’’ means, with respect to any taxpayer, any convertible virtual currency to which the taxpayer becomes entitled by reason of a hard fork, according to the bill’s draft. A hard fork is any material change in the shared digital ledger, which is used to verify transactions in such currency if such a change results in the maintenance of independent shared digital ledgers.
America’s taxpayers “can only comply with the law when the law is clear,” Rep. Emmer said, noting that the bill also would restrict fines against individuals who attempt to report these assets until the IRS provides any type of guidance regarding the appropriate means of reporting them.