US Treasury Intends to Amend the Draft Law on Taxation of the Crypto Industry
The US Treasury Department, as reported by Bloomberg, intends to amend the infrastructure bill, clarifying which types of cryptocurrency companies fall under the definition of a “broker” and will have to comply with the new IRS reporting rules.
As a representative of the Ministry of Finance told the publication, developers, miners and wallet providers will not be subject to the new reporting requirements, if they also do not act as brokers.
“Treasury officials will not provide general benefits based on how firms identify themselves. Instead, management will focus on whether the firm qualifies as a broker under the tax code,” wrote Christopher Condon and Laura Davidson.
As of this writing, the Ministry of Finance has not yet publicly confirmed this information.
The infrastructure bill was passed by the US Senate last week without clarification on cryptocurrency companies.
Although Senator Pat Toomey, along with colleagues Ron Wyden and Cynthia Lammis, proposed an amendment that would exclude protocol developers from tax reporting requirements, the draft passed without it.
Later, Congresswoman Anna Eshu, representing California’s 18th congressional district, wrote to Congress Speaker Nancy Pelosi and called for amendments to the definition of a cryptocurrency broker in the controversial Senate infrastructure bill since miners, validators and wallet developers will not be able to comply with tax reporting requirements for cryptocurrency.
Before the bill will be fully approved as a new law, it must be approved by members of the House of Representatives. But the date of the vote has not yet been set.