Mike Crapo

United States Senate Financial Services Committee Chair Ron Wyden and ranking member Mike Crapo released an open letter to the digital asset community on July 11 asking for input on the taxation of digital assets. The senators are looking for solutions to highly complex taxation issues, so much so that they offered background reading from the Joint Committee on Taxation to prepare respondents.

Senate Banking Chair Mike Crapo (R-Idaho) on Tuesday urged the Office of the Comptroller of the Currency to develop rules around the use of cryptocurrencies and distributed ledger technology by banks.

“The cryptocurrency ecosystem is as diverse in its products and functions as the rest of financial services,” Crapo wrote to Acting Comptroller Brian Brooks, in response to a request for input on whether the OCC’s policies around digital banking are sufficient. “These and similar innovations are inevitable, beneficial and the U.S. should lead in their development.”

The Idaho Republican praised a move by the agency clarifying that national banks are allowed to hold crypto assets on behalf of their clients, even as federally insured institutions are restricted from holding digital assets themselves.

“It would be prudent to provide similar clarity for payments,” he added. “The U.S. should develop clear rules of the road that protect businesses and consumers without stifling future innovation.”

The top Republicans and Democrats on the Senate Banking Committee plan to introduce legislation this week that would direct the Government Accountability Office (GAO) to study virtual currency’s role in illicit online activity.