A bipartisan group of U.S. senators have called on Treasury Secretary Janet Yellen to clarify the language in the infrastructure bill signed into law by President Joe Biden around the tax reporting requirements on crypto.
In a Tuesday letter, Senators Rob Portman, Mike Crapo, Pat Toomey, Mark Warner, Kyrsten Sinema, and Cynthia Lummis urged Yellen to “provide information or informal guidance” on the definition of “broker” in the recently passed infrastructure law, HR 3684. Under the current wording, people in the crypto space including miners, software developers, transaction validators and node operators are required to report most digital asset transactions worth more than $10,000 to the Internal Revenue Service, or IRS.
However, according to the U.S. lawmakers, the law contains an “overly-broad interpretation” of what a broker is and places an undue burden on certain individuals who may not have the necessary information on transactions to comply. The six said Yellen is empowered to use the Administrative Procedure Act, legislation which determines how federal agencies may develop and issue regulations. In this case, they urged her to provide a set of rules clarifying the definition of a broker “in an expeditious manner,” or no later than the end of the year.
“We ask that you carefully consider the characteristics of the technologies which drive this space, which may include differences in the consensus mechanisms of various distributed ledgers and second layer protocols,” said the six senators. “Digital assets could be impactful technological…