Skip to content Skip to sidebar Skip to footer
A letter from a Treasury official answers concerns raised by the crypto sector concerning access to client information.

In a letter delivered to a group of senators on Friday, the U.S. Treasury Department indicated that crypto miners and stakers would be exempt from the tax reporting requirements imposed on exchanges.

The letter addressed the crypto industry’s fears that last year’s Infrastructure Investment in Jobs Act will put unnecessary tax reporting demands on organizations like crypto miners and stakers who do not engage directly with consumers by extending the definition of a “broker.” Brokers must gather thorough information on customers and their trades as part of the regulations.

Participants in the industry pointed out that miners, stakers, and other parties often do not have access to exchanges’ consumer information when they support transactions. As a result, some entities may be unable to comply with an overly wide definition. According to Treasury’s letter, the enlarged definition would be confined to parties that already collect this information.

According to the letter, present laws impose broker reporting responsibilities solely on market participants engaged in commercial operations that provide them access to information regarding taxpayers’ sales of securities.

Bloomberg originally published the contents of the letter on Friday.

The letter, sent by Jonathan Davidson, an assistant Treasury secretary for legislative affairs, states that ancillary parties that cannot get information that is helpful to the IRS (Internal Revenue Service) are not intended to be covered by the reporting requirements for brokers.

The Treasury Department also intends to investigate the “significant distinctions” between traditional securities backed by brokers and digital assets.

Davidson also stated that the Treasury Department intends to submit proposed regulations that reflect how it defines a broker in a manner comparable to the rulemaking process used by other federal agencies.

This procedure will allow the general public and industry participants to provide feedback.

In a letter to Treasury Secretary Janet Yellen last month, a group of U.S. legislators argued that the definition of “broker” in the infrastructure bill is incompatible with the crypto ecosystem.

Show CommentsClose Comments

Leave a comment

The leader in blockchain news, Cryptowatchlists is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Cryptowatchlists is an independent online newspaper, which concentrate in cryptocurrencies and blockchain startups.
Our Biggest Stories Delivered to Your Inbox