Last updated on January 20th, 2022 at 04:27 pm
A set of six United States Senators has requested that Janet Yellen, the Treasury Secretary, clarify the conditions linked to crypto taxation that are contained in the infrastructure bill that was signed into law by the President of the United States, Joe Biden.
The Senators, Rob Portman, Mike Crapo, Pat Toomey, Mark Warner, Kyrsten Sinema, and Cynthia Lummis, sent the letter on Tuesday, requesting that the Treasury Secretary should “provide informal information or advice” on the meaning of “broker” that is contained in the brokerage law.
By using the current meaning, those that are active in the crypto space will have to state a large percent of their transactions, especially when it is above the ten thousand dollars benchmark. They have to report this to the Internal Revenue Service, IRS.
The US senators feel that the law is broad and may be open to multiple interpretations concerning the definitions of a broker. It could end up burdening the wrong people to disclose their transaction information. According to the lawmakers, the Treasury Secretary was allowed by the Administrative Procedure Act to decide on the way federal agencies could operate. They want her to create rules to guide how these agencies interpret the definition of a broker.
In the Tuesday letter, they stated;
“We ask you to carefully consider the characteristics of the technologies that drive this space, which may include differences in the consensus mechanisms of various distributed registries and second-layer protocols. Digital assets could impact technological developments in certain industries, and clear guidelines on tax reporting requirements will be important for those in this ecosystem.”
