In Brief:
- The Treasury will not target non-brokers like miners, hardware developers and others.
- Jerry Brito, Executive director of CoinCenter said little comfort in it.
The US Treasury Department will not target non-brokers like miners, hardware developers and others, even if the provision isn’t amended.
According to the CNBC report, reporting requirements will not be imposed on non-brokers like miners, hardware and software providers that are unable to comply. The official added that crypto advocates’ fears are unwarranted.
The controversial bill requires “broker” to comply with the proposed IRS reporting requirements, which is itself not the concerning part. The broad definition of brokers is what has the crypto community fighting back as it covers miners, hardware and software providers. This all does not have the required information for reporting.
The infrastructure bill is awaiting in the House of Representative. On Tuesday, the house passed a $3.5 trillion budget resolution and advanced the bipartisan infrastructure bill. In a statement, Pelosi said she is committed to passing the bill before September 27.
Jerry Brito, Executive director of CoinCenter, expressed his concern on twitter saying that there’s “little comfort” in it. While “glad to hear that Treasury officials are telling reporters in background that they don’t intend to target miners if the infrastructure bill’s crypto tax provision becomes law,” Brito said. Of course, Treasury will never target non-brokers; whoever’s targeted will have been interpreted to be a broker.
Additionally, the point of the bill is to expand the definition of “broker.” The Treasury could interpret it to even cover non-middlemen who would not qualify as brokers today. The expanded definition of “broker” is only to concerns about this provision as others just haven’t gotten attention “because they weren’t the subject of the Bipartisan Senate amendment effort.
He was concerned that the article says Treasury officials said they did intend to target “certain decentralized exchanges”. But it’s not clear who these “certain decentralized exchanges” they are referring to.
“I appreciate that it seems to be the Treasury’s intention to get this right, and we look forward to engaging in any regulatory process in the years to come,” Brito added.
