President Biden Signs Infrastructure Bill Containing Crypto Broker Reporting Requirement Into Law

Sen. Cynthia Lummis and others are now attempting to narrow the scope of the law’s crypto broker clause with a separate bill.

Nov 15, 2021 at 10:29 p.m. UTC
Updated Nov 16, 2021 at 9:10 p.m. UTC

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

President Joe Biden signed into law Monday the $1 trillion bipartisan infrastructure bill, which contains a controversial cryptocurrency tax reporting requirement.

  • The crypto industry was concerned about a tax reporting requirement within the bill that sought to expand the definition of a broker for Internal Revenue Service purposes. The bill would require all brokers to report transactions under the current tax code.
  • Industry proponents worried the definition would be too broad, capturing entities such as miners and other parties that don’t actually facilitate transactions.
  • Sen. Cynthia Lummis (R-Wyo.) and others are attempting to narrow the scope of the law’s crypto broker clause with a separate bill introduced Monday.
  • Another provision opposed by the crypto industry essentially requires recipients of transactions over $10,000 to verify the sender’s personal information and record his or her Social Security number, the nature of the transaction and other information, and report the transaction to the government within 15 days.
  • Some lawyers have pointed out that when applied to cryptocurrencies and other digital assets like non-fungible tokens (NFT), it would be nearly impossible to comply with the law.

CORRECTION (Nov. 15, 22:41 UTC): An earlier version of this story incorrectly stated that Sen. Lummis’s bill had failed.

CORRECTION (Nov. 16, 10:06 UTC): A previous version of this story incorrectly stated that the threshold for transactions to be reported was $1,000.

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Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

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