Treasury to the rescue? Officials to clarify crypto tax reporting rules in infrastructure bill: report

consultation businessman male lawyer judge counselor having team meeting scaled

Speaking on condition of anonymity, an official has reportedly told Bloomberg that the Treasury Department is planning to clarify the definition of “broker” in the recently passed infrastructure bill.

The United States Treasury Department is reportedly seeking to clarify the definition of brokers in the bipartisan infrastructure bill passed by the Senate last week, offering cautious reassurance that the new legislation won’t impact innovation and growth in the blockchain industry.

As reported by Bloomberg, the Treasury Department is preparing guidance on what types of crypto companies will be required to comply with new Internal Revenue Service reporting requirements. The report indicated that the definition of “broker” could be narrowed from what many fear would include protocol developers and wallet providers that currently operate in the cryptocurrency industry.

A Treasury official reportedly told Bloomberg that developers, miners and wallet providers won’t be subjected to the new reporting requirements, provided they don’t also act as brokers. “The Treasury’s guidance won’t grant blanket exemptions based on how firms identify themselves and instead focus on whether a firm’s activities qualify it as a broker under the tax code,” wrote Christopher Condon and Laura Davison.

At the time of writing, the Treasury Department has yet to confirm publicly whether these plans are true.

Related: Biden’s infrastructure bill doesn’t undermine crypto’s bridge to the future

As Cointelegraph reported, President Joe Biden’s infrastructure bill passed the United States Senate last week without the much-needed clarification on cryptocurrency companies. Senator Pat Toomey said the legislation “imposes a badly flawed, and in some cases unworkable, cryptocurrency tax reporting mandate that threatens future technological innovation.”

Toomey, along with bipartisan colleagues Ron Wyden and Cynthia Lummis, had proposed an amendment that excluded protocol developers from the tax reporting requirement. Possibly due to political reasons, the amendment ultimately did not make it to the 2,700-page infrastructure bill that was voted on by the Senate last week.

Related: Rep Tom Emmer introduces bill to provide certainty for digital assets

The bill must clear the House of Representatives before it becomes law. Although there is no timetable for when the House will vote, at least nine Democrats have warned Speaker Nancy Pelosi that they won’t vote for a budget resolution until the infrastructure deal is passed.

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 68,114.25
ethereum
Ethereum (ETH) $ 3,755.77
tether
Tether (USDT) $ 0.998747
bnb
BNB (BNB) $ 593.55
solana
Solana (SOL) $ 167.64
staked-ether
Lido Staked Ether (STETH) $ 3,755.88
usd-coin
USDC (USDC) $ 0.999094
xrp
XRP (XRP) $ 0.520486
dogecoin
Dogecoin (DOGE) $ 0.159804
cardano
Cardano (ADA) $ 0.446579
the-open-network
Toncoin (TON) $ 6.48
shiba-inu
Shiba Inu (SHIB) $ 0.000026
avalanche-2
Avalanche (AVAX) $ 36.38
chainlink
Chainlink (LINK) $ 18.10
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,181.27
tron
TRON (TRX) $ 0.111363
polkadot
Polkadot (DOT) $ 7.03
bitcoin-cash
Bitcoin Cash (BCH) $ 466.27
uniswap
Uniswap (UNI) $ 10.88
near
NEAR Protocol (NEAR) $ 7.39
matic-network
Polygon (MATIC) $ 0.700018
litecoin
Litecoin (LTC) $ 84.44
pepe
Pepe (PEPE) $ 0.000014
internet-computer
Internet Computer (ICP) $ 12.19
fetch-ai
Fetch.ai (FET) $ 2.23
leo-token
LEO Token (LEO) $ 5.96
dai
Dai (DAI) $ 0.999778
wrapped-eeth
Wrapped eETH (WEETH) $ 3,905.92
ethereum-classic
Ethereum Classic (ETC) $ 29.96
aptos
Aptos (APT) $ 9.20
render-token
Render (RNDR) $ 10.16
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,709.21
hedera-hashgraph
Hedera (HBAR) $ 0.101322
dogwifcoin
dogwifhat (WIF) $ 3.44
cosmos
Cosmos Hub (ATOM) $ 8.55
arbitrum
Arbitrum (ARB) $ 1.14
kaspa
Kaspa (KAS) $ 0.138115
immutable-x
Immutable (IMX) $ 2.21
mantle
Mantle (MNT) $ 0.998080
filecoin
Filecoin (FIL) $ 5.79
crypto-com-chain
Cronos (CRO) $ 0.116738
stellar
Stellar (XLM) $ 0.105984
ethena-usde
Ethena USDe (USDE) $ 1.00
the-graph
The Graph (GRT) $ 0.306669
first-digital-usd
First Digital USD (FDUSD) $ 0.993797
blockstack
Stacks (STX) $ 1.94
arweave
Arweave (AR) $ 43.22
bittensor
Bittensor (TAO) $ 404.66
okb
OKB (OKB) $ 45.37
optimism
Optimism (OP) $ 2.48