The US Treasury plans to exempt cryptocurrency miners and stakers from rules that require brokers to share clients’ transaction data with the IRS.
The department wrote in a letter to a group of senators that ancillary parties who have no access to information crucial to the IRS are also exempt.
The latter adds that the treasury would consider how far parties like centralized and decentralized exchanges should be treated as brokers.
The Ohio Republican Senator Rob Portman notes that the new directive, which includes wallet software and hardware providers, only applied to brokers.
The Treasury Assistant Secretary for Legislative Affairs, Jonathan Davidson, said that crypto validators were unlikely to ascertain if a transaction was part of a sale. Davidson also added that crypto wallet providers were not undertaking brokerage business.
A group of US senators, including the Wyoming Republican, Cynthia Lummis, urged the Treasury last year to clarify the definition of a broker under the infrastructure law for regulatory purposes.
Source: Twitter
Appreciate the Treasury Department affirming that crypto miners, stakers and those who sell hardware and software for wallets are not subject to tax reporting obligations.
— Rob Portman (@senrobportman) February 12, 2022
As I have said from the start, this requirement only applies to brokers. pic.twitter.com/k5l6kDs4iA