00:00Should we get ourselves going, but before I tap the pretend gavel, I'm going to try to say this two or three times, and I even said it in the back of the room.
00:14For many of us who've been around this for a while, I think I hold the record of being the very first person to use the word Bitcoin in the congressional record.
00:25I think it was 2011, Ron Paul's Monetary Oversight Subcommittee on Financial Services, and no one had any idea what I was talking about, but I had like a Wired article about it.
00:38And here we are a decade plus later.
00:43Now our job in this committee, I'm going to say it two or three times, I'll say it as part of the opening statement, we're the tax writing committee.
00:50We're going to try to figure out now, as the committees with the regulatory oversight, Financial Services, the Senate Companion, make the rules, we now have to figure out how it fits into the tax structure.
01:06And I will beg from both of our members, the witnesses, help us on the tax regulatory, the recognition of an asset, recognition of gain rule set.
01:23If someone really, really, really wants to spend their time going back and forth on the regulatory aspect, I do suggest they ask for a transfer to the Financial Services Committee.
01:33So let's have it at, let's have at this.
01:37Good morning, everyone, and welcome to the Oversight Committee of the Ways and Means for the 119th Congress.
01:45We're actually trying to focus on ensuring digital asset policy for this century.
01:52Thank you for joining us for this discussion.
01:54While much of today's hearing will be focused on examining this evolving industry and discussing potential policy solutions within the committee's jurisdiction,
02:08it also is important to note the complex relationship between digital assets, traditional assets,
02:14and how we equalize and create a sense of fairness in its tax and our side of the rules, so we don't create also artificial arbitrages.
02:27Even today, more and more companies are exploring ways to use crypto assets in their treasury management and their hedging book.
02:36This is something we have a great interest in.
02:38And so help us understand both those management strategies and how they will also fit into a tax regime.
02:49Currently, the Internal Revenue Service Code defines crypto as a property, not currency.
02:57However, there are very few additional rules specific to digital assets,
03:03leaving many stakeholders often confused when it comes to the tax complications.
03:10That is our fixation here.
03:11Help us create at least our understanding so the brilliant staff sitting behind us, both on the left and the right,
03:20can actually help us build the rules, the code, and what the future looks like so we have stability.
03:26So if innovation is going to come, that innovation isn't coming because it's a tax leakage or there's an arbitrage there.
03:34We're really trying to make sure we understand what we're doing here.
03:38Additionally, and equally as important, we must use today's hearing to learn more about what Congress can do
03:45to help retain the leadership of this evolving industry, these digital assets, into keeping them in this country.
03:53Also, aligning the tax code with regulatory certainty all but ensures American becoming and remaining the crypto capital of the world.
04:05I look forward to the discussion.
04:08Often when I have the benefit of sitting in the chair, I'm going to do something slightly differently.
04:14I'm going to save my questions to the end because sometimes there's one of the beautiful things about this committee
04:22is we have some folks who are actually somewhat more technical on this subject area.
04:27So I will ask all of you to be at your A game as we sort of go through this.
04:32So I'm going to introduce our witnesses and then let's have at it.
04:37You don't want to introduce your witness.
04:44Now you want to, no, Ms. Wolfe.
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