Finally a good news for the crypto industry is coming, which will give freedom to the miners, stakers, software and hardware providers not to report to the IRS.
In Q4 2021, a $1 trillion infrastructure bill of the US, to collect tax and information of transactions from the crypto industry, came into existence. At that time the majority of the crypto proponents and supporters raised their voices against this bill. The main controversy was associated with the rule to mandate all the crypto miners, stakers, crypto software & hardware providers to report all the transactions that they are processing. In actuality, Bill considered all these middlemen as brokers.
On 11 February, Bloomberg published a report on this matter and noted that a group of senators received a letter on the same day (Friday).
“cryptocurrency miners, stakers, “as well as software and hardware providers” won’t be considered “brokers” anymore.”
The letter also quoted the statement of the Treasury Assistant Secretary for Legislative Affairs, Jonathan Davidson, who clearly said that reporting those unnecessary transactions to the IRS should not be part of reporting necessity.
“Ancillary parties who cannot get access to information that is useful to the IRS are not intended to be captured by the reporting requirements for brokers.”
Davidson also stated a statement to clarify the definition of broker. He said:
“The extent to which other parties in the digital asset market, such as centralized exchanges and those often described as decentralized exchanges and peer-to-peer exchanges, should be treated as brokers.”
When this bill was introduced in November of last year, many people claimed that the US government wants to put a burden on the crypto industry supporters, that is why they are making such rules.
Later after the introduction of this rule, Senator Cynthia Lummis from Wyoming clearly said that crypto is here to stay and people should not take any tension regarding this matter. Cynthia also ensured that Senators are working together to fix this mistake.