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US Lawmakers Approve New Cryptoassets Reporting Rules

Wednesday, August 25, 2021

The US Senate has approved the inclusion of new provisions in the bipartisan infrastructure bill to require intermediaries involved in cryptocurrency trading to report details about transactions.

Despite concerns raised by various lawmakers that the provisions fail to provide clarity about who the reporting requirement would apply to, two proposed clarificatory amendments were rejected.

These would have clarified the term "brokers", on whom the reporting obligation would fall, after concerns that parties without access to the requisite information would be obligated to report, such as virtual currency miners.

The proposals would require "brokers" to include information about cryptocurrency transactions they have facilitated on a 1099 form. The bill defines brokers as "any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person."