US Congressman Tom Emmer Drafts Bills To Support Blockchain And Cryptocurrencies

News, Regulation | September 24, 2018 By:

Tom Emmer, the US Representative for Minnesota’s 6th congressional district, has announced that he will introduce three bills to support blockchain technology and cryptocurrencies.

“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,” said Emmer. “Legislators should be embracing emerging technologies and providing a clear regulatory system that allows them to flourish in the United States.”

The legislation will support the rapidly growing blockchain industry, provide clarity to entities that never take control of consumer funds, and establishes a safe harbor for taxpayers with “forked” digital assets.

The first bill, the “Resolution Supporting Digital Currencies and Blockchain Technology,” expresses support for the industry and its development in the US. The bill calls for the government to prioritize accelerating the development of blockchain technology to support transparency, security, and authentication in a way that recognizes its benefits and allows consumer protection while supporting future innovation. According to the bill, US federal agencies should work toward a coordinated framework to support digital currencies and blockchain technology, and avoid undue restrictions on blockchain networks and the trustworthy decentralized computing services they facilitate.

The second bill, the Blockchain Regulatory Certainty Act, aims to provide a safe harbor from licensing and registration for certain non-controlling blockchain developers and providers of blockchain services. It designates crypto miners and multisig-wallet providers as blockchain companies that don’t require a money transmitter license to operate in the US as they don’t control consumer funds.

The final bill, 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 cryptocurrency in the absence of administrative guidance. The bill will restrict fines against individuals that attempt to report crypto assets until the Internal Revenue Service (IRS) provides any type of guidance regarding the appropriate means of reporting them.