I 
118TH CONGRESS 
1ST SESSION H. R. 1414 
To amend the Internal Revenue Code of 1986 to clarify the definition of 
broker, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 7, 2023 
Mr. MCHENRY (for himself, Mr. TORRES of New York, Mr. DAVIDSON, Mr. 
KHANNA, Mr. EMMER, Mr. SWALWELL, Mr. SCHWEIKERT, Mr. SOTO, 
and Mr. HILL) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Fi-
nancial Services, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to clarify 
the definition of broker, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Keep Innovation in 
America Act’’. 
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SEC. 2. CLARIFICATION OF DEFINITION OF BROKER. 
(a) IN GENERAL.—Section 6045(c)(1)(D) of the In-
ternal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(D) any person who (for consideration) 
stands ready in the ordinary course of a trade 
or business to effect sales of digital assets at 
the direction of their customers.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to returns required to be filed and 
statements required to be furnished after December 31, 
2025. 
SEC. 3. REPORTING OF DIGITAL ASSETS. 
(a) BROKERS.— 
(1) DEFINITION OF DIGITAL ASSET.—Section 
6045(g)(3)(D) of the Internal Revenue Code of 1986 
is amended to read as follows: 
‘‘(D) DIGITAL ASSET.—The term ‘digital 
asset’ means any digital representation of value 
which is recorded on a cryptographically se-
cured distributed ledger.’’. 
(2) 
APPLICABLE
DATE.—Section 
6045(g)(3)(C)(iii) of such Code is amended to read 
as follows: 
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‘‘(iii) January 1, 2025, in the case of 
any specified security which is a digital 
asset, and’’. 
(b) 
FURNISHING
OF
INFORMATION.—Section 
6045A(d) of such Code is amended to read as follows: 
‘‘(d) RETURN REQUIREMENT FOR CERTAIN TRANS-
FERS OF DIGITAL ASSETS NOT OTHERWISE SUBJECT TO 
REPORTING.—Any broker, with respect to any transfer 
(which is not part of a sale or exchange executed by such 
broker) during a calendar year of a covered security which 
is a digital asset from an account wholly controlled and 
maintained by such broker to an account which is not 
maintained by, or an address not associated with, a person 
that such broker knows or has reason to know is also a 
broker, shall make a return for such calendar year, in such 
form as determined by the Secretary, showing the infor-
mation otherwise required to be furnished with respect to 
transfers subject to subsection (a). Information reported 
by brokers under this section shall be limited to customer 
information that is voluntarily provided by the customer 
and held by the broker for a legitimate business purpose.’’. 
(c) DELAYED EFFECTIVE DATE FOR CERTAIN IN-
FORMATION REPORTING CHANGES; REVERSAL OF CER-
TAIN ADDITIONS TO 6050I.—Section 80603 of the Infra-
structure Investment and Jobs Act is amended— 
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