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Senators Want Treasury to Clearly Define ‘Broker’ in Infrastructure Law’s Crypto Tax Provision

Six senators have urged Treasury Secretary Janet Yellen to issue informal guidance providing the definition of “broker” of cryptocurrency and other digital assets in a provision of the Infrastructure Investment and Jobs Act.

Section 80603 of the law seeks to “provide more certainty for Americans looking to invest in these digital assets, ensuring that crypto investors receive the same tax documents, generally a Form 1099-B, from their brokers that stock traders receive, which in turn will enable them to file their taxes more easily and promote higher compliance,” the lawmakers told Yellen in a letter Tuesday.

They said the provision is one of the federal government’s initial efforts to better integrate virtual currency and other digital assets into the U.S. tax code.

The move is in response to concerns from market participants over the broad interpretation of the definition of broker in the provision.

The lawmakers have called on the Department of the Treasury to issue guidance no later than the end of calendar year 2021 added that they are ready to propose legislation to address the matter.

Sens. Rob Portman, R-Ohio; Mark Warner, D-Va.; Mike Crapo, R-Idaho; Kyrsten Sinema, D-Ariz.; Pat Toomey, R-Pa.; and Cynthia Lummis, R-Wyo, signed the missive.

POC - Digital Currency and National Security Forum

On Jan. 27, the Potomac Officers Club will bring together distinguished government and industry leaders to offer the GovCon community an insight into the national security aspect of digital currencies.

POC’s Digital Currency and National Security forum will feature National Cyber Director Chris Inglis; and Juan Zarate, global co-managing partner and chief strategy officer at K2 Integrity, as speakers.

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