Minnesota Rep. Tom Emmer has reportedly rolled out a new law, dedicated to protecting crypto taxpayers with forked assets from any potentially imposing fees or penalties from the IRS. 

Specifically revealed by Emmer on May 17th, the congressperson from Minnesota disclosed his initiative to put up for approval the Safe Harbor for Taxpayers with Forked Assets bill, to the US House of Representatives.

Should the bill receive the regulatory green light, it would form a safe harbor for crypto holders with forked assets – making them nontaxable events. 

Moreover, these conditions would still be ongoing until the Internal Revenue Service provides “clear and consistent guidance on how these transactions should be managed.”

Per Emmer, it is the IRS’s duty, similar to that of other federal governmental bodies, to stay relevant with the development speed of technologies, or risk falling out of the leading position the US is in at the moment, when it comes to innovations. 

Emmer additionally remarked that the insufficiency of tax guidance is causing unfair impact on taxpayers when making investments in an emerging tech, and what the IRS has put out up to now is not pragmatic and provides no support for the tech or associated individuals.

“We should be embracing emerging technologies and providing a clear regulatory system that allows innovation to flourish in the United States. A safe harbor will protect taxpayers until the IRS takes steps to improve their guidance.”

Crypto users who HODL their assets in America are reportedly not required to fulfill tax duties on them normally, but typically individuals who transfer tokens, exchange them for fiat or receive digital currency as the result of a fork will need to keep the IRS informed of such activities.