New Language For Crypto Tax Reporting Excludes Decentralized Exchanges, Miners Still Vulnerable

Forbes

According to CoinDesk, an updated draft of the U.S. Senate’s bipartisan infrastructure bill narrows a key definition for who must report crypto transactions to the IRS. The initial language stated “…any person who (for consideration) regularly provides any service or application (even if noncustodial) to facilitate transfers of digital assets, including any decentralized exchange or peer-to-peer marketplace”.

WASHINGTON, DC – JULY 28: U.S. Sen. Rob Portman (R-OH) (L) and Sen. Kyrsten Sinema (D-AZ) (R) … [+] answer questions from members of the press during a news conference after a procedural vote for the bipartisan infrastructure framework at Dirksen Senate Office Building July 28, 2021 on Capitol Hill in Washington, DC. The Senate has advanced the bipartisan infrastructure framework with the vote of 67-32. (Photo by Alex Wong/Getty Images)

How To Get Free Crypto  

Getty Images

Outside of the surprising insertion of this type of measure into a ‘must-pass’ bill, after years of discussion and careful deliberations by the crypto trade associations and think tanks in D.C. with allies in the House and Senate, it seems like a narrow victory that the language is even still part of the infrastructure package without any Congressional hearings or debate with the quickly maturing crypto industry. However, the new language does not specify that ‘decentralized exchanges’ are to be included in this reporting requirement. Additionally, the wording is such that it does not specifically exclude bitcoin miners, hardware manufacturers and software developers.

Jerry Brito, the Executive Director of Coin Center who just finished testifying earlier last week at a Senate hearing on cryptocurrencies, tweeted the new language in the bill as a contrast to what was originally in the text. The new language was revised to state. “…any person (who) for consideration is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.” Brito indicated that while this is better than what was originally in the bill, it was, “…still not good enough to clearly exclude miners and similarly situated persons.”

Jerry Brito, Executive Director of Coin Center, listing the key changes in the controversial crypto … [+] tax reporting requirement that is part of the Infrastructure package being debated in Congress.

Twitter

Brito also pointed out the way the cryptocurrency industry has been collaborating and working together to help avoid bad legislation that may have swept participants into the need to provide onerous tax reporting requirements, even without having a customer. The Blockchain Association has been tweeting updates as well, with Kristin Smith the Executive Director of the Blockchain Association noting this was, ‘not a drill’ earlier this week to let the cryptocurrency and blockchain industry aware of the dangers involved in how the bill language was written and who could be impacted.

Coinbase Banner  

MORE FOR YOU

Kristin Smith shares the letter written by the Blockchain Association to Congress on the crypto … [+] provision in the infrastructure bill.

Twitter

Ultimately, the infrastructure bill, considered to be a key achievement and ‘must-pass’ for the Biden Administration, will continue to move ahead at full steam; however, the way the crypto industry has quickly organized itself shows signs of maturity and helps provide a bit of a cautionary tale to policymakers that, although a nascent industry, it is a must to consult with the industry representatives on policymaking.

This ‘surprise’ language in the infrastructure bill, and the manner in which the advocates for the industry came together, should be viewed as a victory for crypto that the industry has been able to come together and influence what was written in the bill.

Go to Source
Author: Jason Brett, Contributor


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

FreeBitcoin Banner  

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.