US Congressman Creates Tax ‘Safe Harbor’ for Crypto Users

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In Brief
  • Congressman Tom Emmer introduces a bill called Safe Harbor for Taxpayers with Forked Assets Act.

  • Aims to protect taxpayers.

  • This is not the first time the Republican lawmaker has been vocal about his support for the development of crypto technologies.

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Minnesota congressman Tom Emmer has introduced the Safe Harbor bill to protect taxpayers with Forked Assets Act from Internal Revenue Service (IRS) penalties.

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The act does not allow penalties against those who don’t report gains or losses with forked assets, until the IRS has created clear terms and conditions that forked asset holders must follow.

The congressman has introduced this act as he believes the government needs to encourage and foster the development of technologies and not stifle them with costs and charges.

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“Just like every other federal agency, the IRS must keep up with the rapid pace of technology or risk losing American leadership in innovation. Taxpayers suffering from a lack of tax guidance are being unfairly punished for investing in emerging technology. What has been issued by the IRS so far is not pragmatic and has not supported the technology nor those who engage with it,” he said and added:

“We should be embracing emerging technologies and providing a clear regulatory system that allows innovation to flourish in the United States. A safe harbor will protect taxpayers until the IRS take steps to improve their guidance.”

The bill has received a lot of support from various digital communities, with big names like executive director of the Blockchain Association Kristin Smith, executive director of Coin Center Jerry Brito, and chief policy officer at the Chamber of Digital Commerce Amy Davine Kim.

This is not the first time the Republican lawmaker has been vocal about his support for the development of crypto technologies. In August 2020, he set up the first-ever cryptocurrency town hall where they discussed the future of the technology. Leaders from the blockchain and crypto industry were invited, including  CEO of Circle Jeremy Allaire, CEO of Ripple Brad Garlinghouse, and a co-founder of Paxos Chad Cascarilla. 

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After studying journalism at Rhodes University, Nicholas worked as a financial reporter and analyst, covering a broad range of topics from logistics, to renewable energy, to ICT. Nicholas became fascinated with the ever-evolving world of technology. He is now a crypto asset journalist.

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