U.S. Treasury Department To Use Narrow Definition Of 'Broker' for Infrastructure Bill

The Monetary regulatory is expected to clarify the language around IRS obligations by next week.

By
Kyle Heise
on
August 17, 2021
Category:
Blockchain News

The Unlikely Hero

A statement by the Department of the Treasury has yet to be made public, but rumors swirl that the US monetary body will apply a broad interpretation of the term ‘broker’ from the Infrastructure bill that recently passed from Senate to House.

A report from Bloomberg brought some good news to the world of crypto, which hopefully assuages recent concerns regarding the language of the US Senate infrastructure bill.  Bloomberg reported the news on Aug. 13 through an anonymous source. The Treasury Department may be who comes to finally rescue crypto from unnecessary pangs. 

“The Treasury’s guidance won’t grant blanket exemptions based on how firms identify themselves and instead focus on whether a firm’s activities qualify it as a broker under the tax code,” wrote Christopher Condon and Laura Davison of Bloomberg while paraphrasing their unnamed internal source.

The Senate’s version of the $3.5 Billion infrastructure bill passed despite significant advocacy from the crypto community for amendment to the bill’s language. The main concern lies in the usage of the term ‘broker’. 

Most in the crypto community believe it lends too much for interpretation and could inadvertently affect the whole sector in a negative way. It appears that Sec. Yellen and her Department have seen through not to cripple the crypto community.

Source


Clarification Next Week

A plan to exempt non-broker parties on a case-by-case basis represents a far cry from the wide interpretations originally sought by Secretary of Treasury Yellen. When the original language came to be, some saw Yellen’s potential meddling as a negative for the crypto community. 

The Treasury is expected to give a detailed list of who is expected to conform to the IRS reporting requirements.

The new tax guidance from the Treasury should be public by next week, before Speaker of the House Pelosi expects to vote on the bill. The crypto community may well have its clarity sooner than later. While amendments can still be added, given the importance of the bill, it is unlikely there will be more changes.

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Kyle Heise

Born and raised in the East Bay of California. He has studied and worked on three continents and lived in eight countries. Kyle resides in San Francisco. He holds bags mostly in Ethererum, Cake, and BSC GameFi projects.

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