Skip to content
Subscriber Only

Treasury Seeks to Quell Fears Crypto Tax Rules Are Overly Broad

  • Department to clarify it’s seeking tax data from brokers only
  • Industry worries infrastructure-bill provision is too broad
Infrastructure Talks Near Finish As Senators Face Time Pressure
Photographer: Stefani Reynolds/Bloomberg

The U.S. Treasury Department is set to clarify that only cryptocurrency companies it considers brokers will need to comply with proposed IRS reporting requirements, aiming to quell concerns over a provision in the bipartisan infrastructure bill passed by the Senate.

Other firms key to the nearly $2 trillion crypto market -- from developers and miners to hardware and software providers -- won’t have any new requirements, so long as they don’t also act as brokers, according to a Treasury official. The Treasury’s guidance won’t grant blanket exemptions based on how firms identify themselves and instead will focus on whether a firm’s activities qualify it as a broker under the tax code, the official said on condition of anonymity to discuss internal deliberations.