US Lawmakers Challenge Infrastructure Bill's Definition of 'Broker'
The representatives propose following a definition which avoids placing "unworkable customer reporting obligations" on parties who do not, in fact, have customers, such as crypto miners and stakers.
A group of United States representatives have challenged the infrastructure bill's definition of "broker," believing it to be incompatible with the crypto ecosystem.
- The 11 representatives, which include Patrick McHenry (R-N.C.), Tim Ryan (R-Ohio) and Tom Emmer (R-Minn.), have written to Secretary of the Treasury Janet Yellen asking for clarity on how the Infrastructure Investment and Jobs Act defines a broker.
- The bill, according to the letter dated Jan. 26, "affords the Department of Treasury the ability to interpret who within the digital asset ecosystem qualifies as a 'broker.' This subjective interpretation has the potential to reach those beyond the intent of Congress."
- As an alternative, the representatives propose following a definition which avoids placing "unworkable customer reporting obligations" on parties who do not in fact have customers, such as crypto miners and stakers.
- The act, which passed in Congress last November and was signed into law by President Biden, contains a number of crypto provisions, with one imposing reporting requirements on brokers.
- Similar concerns over how the act defines a broker were raised previously, with a group of six senators penning an open letter to Yellen in December.
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