The cryptocurrency industry in the United States has won a major legal victory. The US Treasury Department seeks to exclude cryptocurrency miners and other “ancillary parties” from tax reporting requirements.
The US Treasury hinted in a letter to a group of senators that it planned to exclude crypto miners, stakers, and other market players from laws. The law would have forced crypto brokers to share data on their customers’ transactions with the Internal Revenue Service (IRS).
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.
As I have said from the start, this requirement only applies to brokers. pic.twitter.com/k5l6kDs4iA
— Rob Portman (@senrobportman) February 12, 2022
Treasury Assistant Secretary for Legislative Affairs Jonathan Davidson stated in the letter that “ancillary parties who cannot get information valuable to the IRS are not intended to be caught by the reporting requirements for brokers.”
According to the letter, the Treasury would also assess “the degree to which other players in the digital asset market, such as centralised exchanges and those sometimes labelled as decentralised exchanges and peer-to-peer exchanges, should be recognised as brokers.”
