Six senators urge the Minister of Finance to clarify the definition of a broker in the infrastructure law by 2022
A bipartisan group of US senators called on Secretary of the Treasury Janet Yellen to clarify the language of the crypto tax reporting requirements in the infrastructure bill signed into law by President Joe Biden.
In a letter on Tuesday, Senators Rob Portman, Mike Crapo, Pat Toomey, Mark Warner, Kyrsten Sinema and Cynthia Lummis urge Yellen “provides information or informal guidance” on the definition of “broker” in the recently passed infrastructure law HR 3684. According to the current wording, people in the cryptocurrency field, including miners, software developers, transaction validators, and node operators, must report most digital asset transactions worth more than $10,000 to the U.S. Internal Revenue Service (IRS).
However, according to US lawmakers, the law contains “overly broad interpretations” of brokers and imposes an undue burden on individuals who may not have the necessary transaction information to comply with. The six said that Yellen has the right to use the Administrative Procedure Act, which determines how federal agencies formulate and issue regulations. In this case, they urged her to provide a set of rules to clarify the definition of a broker “swiftly” or no later than the end of this year.
The six senators said: “We ask you to carefully consider the technical characteristics driving this field, which may include the differences in the consensus mechanism of various distributed ledgers and second-layer protocols.” “Digital assets may become influential in certain areas. Technology development, and clear guidelines on tax reporting requirements are very important for people in this ecosystem.”
This letter is the latest effort by U.S. legislators to modify the tax reporting provisions in infrastructure legislation. Toomey, Lummis, Sinema, Portman, Warner, etc. Support the bipartisan agreement When the bill passed the Senate in August, the amendment did so, but the proposal was shelved by Alabama Senator Richard Shelby (Richard Shelby) Seeking to add his own amendment To the bill. Senators Ron Wyden and Lummis also tried to pass legislation to change the tax reporting requirement to “not applicable to individuals developing blockchain technology and wallets.” Same day bill Became law.
“Since this bill has become law, Congress has the responsibility to ensure that it is effectively implemented in accordance with Congress’s intentions,” said the six senators.
Portman, Crapo, Toomey, Warner, Sinema, and Lummis added that they are “prepared to provide legislation” to clarify the definition of a broker.