Congress is getting serious about addressing the confusion surrounding the tax treatment of digital assets such as cryptocurrencies. A bipartisan bill dubbed the Responsible Financial Innovation Act was recently introduced in the U.S. Senate. The bill would establish a regulatory framework for digital assets. The first-of-its-kind proposed legislation would attempt to validate the mainstream use of digital assets, particularly so-called stablecoin cryptocurrencies that function as fiat currencies, by integrating existing tax and banking laws. If the bill becomes law, the IRS would be required, within one year, to adopt guidance on merchant acceptance of digital assets. Stay tuned.
