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US Senators urged Treasury Secretary to clarify definition of broker

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A group of US senators sent a letter to Treasury Secretary, Janet Yellen, urging her to provide informal guidance or information on the reporting requirements of “brokers” of the crypto industry after the adoption of the infrastructure plan by the end of 2021.

Thus, Senators Rob Portman (R-OH), Mark Warner (D-VA), Mike Crapo (R-ID), Kyrsten Sinema (D-AZ); Cynthia Lummis (R-WY) and Pat Toomey (R-PA) signed the appeal.

Previously in November, President Joe Biden signed the bipartisan infrastructure law. Among other things, it allows for the obligation of miners and node operators in blockchains, wallet developers; liquidity providers in decentralized finance (DeFi) protocols and other non-custodial players; to report to the Tax Service on the activities of their users.

Senators are ready to propose amendments clarifying the definition of a “broker”

Earlier in August, the media reported that the Treasury Department does not intend to broadly interpret the definition of “broker” in relation to participants in the crypto industry.

If necessary, senators are ready to propose amendments clarifying the definition of a “broker” in the infrastructure plan.

“Digital assets could be impactful technological developments in certain sectors, and clear guidelines on tax reporting requirements will be important to those in this ecosystem,” the report says.

Additional financing of $28 billion

Recall that the requirements of the bill as adopted are technically unworkable. The document has been repeatedly criticized by representatives of the crypto industry, including Elon Musk and Jack Dorsey.

Earlier, Lummis and Toomey, along with colleague Ron Wyden, proposed excluding participants in the crypto industry from the bipartisan plan. But the corresponding amendment did not receive unanimous support.

Furthermore, the plan implied additional financing in the form of taxes from operations with cryptocurrencies in the amount of $28 billion. Pat Toomey considered it too broad and capable of affecting miners. The latter, as he believes, should not be regulated by these norms. Moreover, the senator noted the potential difficulties of non-custodial services.

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