Minnesota Representative to Reintroduce Hard Fork Tax Reform Bill

May 16, 2019
31 Views

Minnesota Congressional Representative Tom Emmer has announced plans to reintroduce a bill meant to “provide temporary safe harbor for the tax treatment of hard forks of convertible virtual currency in the absence of administrative guidance.”

Representative Emmer participated in a panel on the relationship between government and the crypto industry at Consensus 2019 on May 13, 2019, wherein he first announced an attempt to continue the fight for his hard fork bill. Joined by industry leaders and government personalities, Emmer publicly acknowledged the sort of limbo that crypto holders find themselves in when one of their cryptocurrency holdings undergoes a hard fork. When a coin forks in such a way, tax agencies currently have grounds to consider the new “forkcoin” assets as undeclared income.

The first iteration of this bill was introduced by Emmer in September 2018, when it was immediately transferred over to the jurisdiction of the House Committee on Ways and Means. Having effectively died in committee with no significant updates since, Emmer has now declared that the updated version of the bill will differ in several ways from the text of the original, possibly including protections for other means of crypto asset holding such as airdrops.

The issuance of crypto asset forks has been a recurring topic of discussion in the space for several years now, ever since the first major forkcoins were created from the original Bitcoin blockchain. The practice has gained quite a deal of notoriety recently, however, upon the fork of Bitcoin Cash in November 2018. Bitcoin Cash is itself one of the most famous of the original forkcoins and this subsequent split raised many questions about the status of forkcoins in the future. In particular, clarifying the legal status of these assets in the tax ecosystem seems pressing.

Emmer gave no concrete timetable as to when he plans to reintroduce his bill, titled the “Safe Harbor for Taxpayers with Forked Assets Act.” He has mentioned support from other representatives in a Blockchain Caucus which may give this second attempt at getting the bill passed a better chance.

This article originally appeared on Bitcoin Magazine.

You may be interested

Why Every Bitcoin Miner Needs A VPN
Bitcoin
24 views
Bitcoin
24 views

Why Every Bitcoin Miner Needs A VPN

btcethereumadmin - May 20, 2019

The need for a VPN has shot up over the past few years. As we get closer and closer to…

ABN AMRO Eyes Launch of Blockchain Inventory Platform, Dropping Wallet Plan
Crypto News
40 views
Crypto News
40 views

ABN AMRO Eyes Launch of Blockchain Inventory Platform, Dropping Wallet Plan

btcethereumadmin - May 20, 2019

As ABN AMRO drops its exploration of a cryptocurrency wallet product, the Dutch bank says it’s seeking to launch a…

Mutual Funds Network Calastone’s ‘Real-Time’ Blockchain Platform Is Live
Crypto News
25 views
Crypto News
25 views

Mutual Funds Network Calastone’s ‘Real-Time’ Blockchain Platform Is Live

btcethereumadmin - May 20, 2019

Calastone, a transactions network for the mutual funds industry, has moved to its own blockchain-based settlement system, the firm announced…

Leave a Comment

Your email address will not be published.