Media: U.S. Treasury dispels crypto-industry fears over infrastructure plan provisions

The U.S. Treasury does not intend to interpret the definition of ‘broker’ for crypto-industry participants broadly, even if the infrastructure plan is adopted unchanged. CNBC reports, citing a department official.

According to him, the reporting requirements will not extend to those industry players who cannot meet them, for example, miners or developers.

Aimed at the House of Representatives, the bipartisan bill proposes to mobilise $1 trillion for infrastructure upgrades, including $28 billion in taxes from cryptocurrency transactions. The document contains new reporting requirements for industry participants and expands the definition of ‘broker’ in the tax code.

Industry experts criticised the provisions of the plan, noting that this category now includes almost all entities, including miners, validators and wallet developers.

During consideration in the Senate, amendments were proposed to exclude broker-applicable rules from certain activities. First, Senators Ron Wyden, Cynthia Lummis and Pat Toomey proposed the measure, then Rob Portman, Mark Warner and Kirsten Sinema followed with their own proposal.

Before the final vote, the senators, in conjunction with the Treasury, developed a compromise amendment, but it did not become part of the bill due to the stance of 87-year-old Republican Richard Shelby.

In the House, calls were made to amend the document’s crypto-related provisions, but on August 24 the congressmen voted for the initial version. The next vote is scheduled for September 27.

According to a Treasury official, ahead of enactment the department plans to study which crypto-industry participants are capable of meeting the broker reporting requirements.

Anjali Jarivala, founder of the financial-planning firm Fit Advisors, said that the plan’s provisions are more about intent than concrete rules. In her view, there is nothing to worry about.

“This bill is likely to be the first step toward further regulation of cryptocurrencies,” said Jarivala.

Earlier, the Treasury promised to publish tax guidance for crypto companies, which will clarify who in the industry qualifies as a broker.