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Usha Yadav
Dec 16, 2021
by Usha Yadav

 Six senators Ask Janet Yellen to Lay Down Broker's Definition in Infrastructure Law Before 2022

Janet Yellen Broker's Definition
Senators from all parties have asked Treasury Secretary Janet Yellen to clarify how the finance ministry will define a "broker" for crypto tax reporting. Senators 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.) wrote in an open letter published on Tuesday that the crypto industry is concerned about how a broker might be defined after the passage of the bipartisan Infrastructure Investment and Jobs Act, which was signed into law last month.

Define 'Broker' for Infrastructure Bill 

According to U.S. senators, the regulation provides an "overly broad view" of what a broker is and imposes an excessive burden on specific individuals who may lack the essential transaction information to comply. 

The bill includes a few crypto measures, one of which imposes reporting obligations on brokers, raising concerns that any party involved in facilitating transactions, such as software developers or wallet makers, could be labeled a broker. Attempts to change the clause before the bill's approval in the Senate were unsuccessful.

According to the six, Yellen has the authority to apply the Administrative Procedure Act, which governs how government agencies create and publish regulations. They requested her to publish a set of guidelines clarifying the concept of a broker "as soon as possible," preferably before the end of the year.

"We request that you carefully analyze the features of the technologies that drive this space, which may include variances in the consensus methods of various distributed ledgers and second layer protocols," the senators added. "Digital assets could have a significant impact on certain industries, and precise standards on tax reporting obligations will be critical for anyone involved in this ecosystem."

The latest effort by U.S. lawmakers

According to the congressmen, the Joint Committee on Taxation and the Biden administration use the exact definition of "broker" as the bill's writers, Portman and Sinema. This means that the clause only applies to businesses that "facilitate the transfer of digital assets" rather than "ancillary" parties.

The letter cites a conversation between Portman and Warner in which they stated that the provision does not impose new reporting requirements on companies that are not brokers. 

The lawmakers also asked Yellen to start the regulatory process "as soon as possible," in which the Treasury Department will describe how it expects to implement the law and solicit feedback.

Portman, Crapo, Toomey, Warner, Sinema, and Lummis added they were “prepared to offer legislation” to clarify the definition of a broker.

 

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 Six senators Ask Janet Yellen to Lay Down Broker's Definition in Infrastructure Law Before 2022
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

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