Legislation Seeks to Clarify Digital Asset Reporting Requirements

Source: Troutman Pepper

On Aug. 3, U.S. Sens. Rob Portman (R-OH), Pat Toomey (R-PA), Mark Warner (D-VA), Cynthia Lummis (R-WY), and Kyrsten Sinema (D-AZ) introduced legislation to clarify the digital asset reporting requirements signed into law as part of last year’s Infrastructure Investment and Jobs Act.

In August 2021, the senators announced an agreement with the Treasury Department on an infrastructure package amendment that would have clarified the definition of “broker” as to who must report to the government information about a digital asset transaction.

The amendment specifically excluded from reporting requirements services like mining and wallet providers who do not take custody of other individuals’ cryptocurrency, nor are able to comply with the reporting requirements of a broker. The Senate never received the opportunity to vote on and pass this amendment last August due to a procedural hurdle.

The legislation introduced is the exact same text introduced as a bipartisan amendment nearly one year ago. For more information, click here.