Congress looks at taxes, oversight, crime in fintech bills

Cryptocurrencies involve cutting-edge technology, but Congress is aiming at age-old problems when it comes to financial technology legislation: taxation, crime and jurisdiction to set the rules.

A review of the latest fintech-related bills by CQ Roll Call shows lawmakers’ latest efforts are focused on fostering innovation by some and making sure the technology isn’t abused by others.

A bipartisan bill introduced in January, for example, would remove the tax implications each time cryptocurrency is used to make a purchase. The bill would exempt transactions of no more than $200 from current tax rules.

The IRS now requires taxpayers to report with their annual income tax whether they have profited by buying a cryptocurrency and then used the cryptocurrency to buy goods priced in a fiat currency. The profit would be treated like a capital gain. 

Its sponsors, Rep. Suzan DelBene, D-Wash., and David Schweikert, R-Ariz., said in a statement that the existing tax code “makes the…