The U.S. Treasury Department is reportedly issuing new guidance to address the crypto industry’s concerns over the digital asset provision in the latest infrastructure bill.
The Senate’s version of the trillion-dollar infrastructure bill contains a clause that seeks to expand the definition of “broker” in the tax code to cover “any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”
According to a letter sent by Republican Representative Tom Emmer of Minnesota to fellow Congress members, the bill’s current language would include key players in the crypto space, such as software developers or validators, that do not fall within the scope of a “broker” defined in the traditional financial realm.
Bloomberg cites an unnamed Treasury official who reportedly says that the agency is looking to release new guidance that exempts crypto firms – including developers, miners, and hardware and software developers – from complying with the proposed Internal Revenue Service (IRS) reporting requirements in the bill as long as they do not provide broker services.
The unnamed Treasury official says that the guidance will involve focusing on the activities of crypto firms to determine whether or not they qualify as brokers under the tax code.
The hotly debated infrastructure bill is now making its way through Congress, and pro-crypto lawmakers are locking arms in the fight against the controversial crypto legislation. Congressman Darren Soto (D-FL) says he expects fellow representatives to support revisions to the crypto provision.
“Members are starting to pay attention. There is growing bipartisan support to make sure this language is right.”