Members of US Congress Call for Amendments to Cryptocurrency Law
California’s 18th Congressional District Congresswoman Anna Eshoo wrote to Congress Speaker Nancy Pelosi expressing concerns about a controversial new mandate for crypto tax reporting.
In it, she urged Pelosi to amend the definition of a cryptocurrency broker in the Senate’s controversial infrastructure bill, as miners, validators and wallet developers will not be able to comply with cryptocurrency tax reporting requirements.
As previously reported, lawmakers have proposed to expand the cryptocurrency taxation to generate additional revenue of $28 billion. This imposes additional reporting requirements for any crypto company or organization that is considered a “broker”.
The impugned bill defines “brokers” who are required to report certain transactions to the IRS as “any person who (for a fee) is responsible for the regular provision of any digital asset transfer service on behalf of another person”.
Eshoo said in a letter that in a decentralized cryptocurrency system, these individuals and legal entities do not know who the buyers and sellers are and will not be able to fulfill the broker’s requirements.
According to her, the wording of the bill has not yet been finalized, and the last text still needs to be coordinated with the US House of Representatives. Several members of the House have already called for changes.
On August 10, the bill was passed without clarification regarding cryptocurrency or any amendments.