US Infrastructure Law’s Reporting Requirements for Crypto Brokers Likely to Face Delay

The provision would require brokers to collect detailed information on their customers and their trades.

AccessTimeIconJun 29, 2022 at 5:40 p.m. UTC
Updated May 11, 2023 at 3:54 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Hotly debated reporting requirements for crypto exchanges and brokers included in U.S. President Joe Biden’s $1 trillion infrastructure law could face a major delay.

Many in the crypto industry have pushed back against the reporting provision in the infrastructure law, claiming that the law’s definition of “broker” is overly broad, and could theoretically be applied to crypto miners and decentralized protocols.

The back-and-forth over how “broker” will be defined, as well as the challenges of implementing a reporting regime, are likely to blame for the potential delay. However, no final decision has been made on whether the reporting requirements will be delayed or, if they are, how long the delay will last.

Bloomberg first reported the news.

Under the law, which was passed by Congress in November, crypto brokers would be required to collect detailed information, including customer names and addresses and capital gains or losses, on customers and their trades.

The collection requirements were initially slated to take effect in January 2023, with companies required to start sending reports to both their clients and the Internal Revenue Service (IRS) in 2024. The reporting requirements are intended to make it easier for crypto investors to do their taxes – and for the IRS to sniff out tax evasion.

The Treasury Department has been vocal about its concern over unpaid crypto taxes, which analysts have estimated as roughly 10% of all unpaid taxes – the so-called “tax gap” that has become a battle cry for Treasury Secretary Janet Yellen.

News of the delay will likely come as a relief to many companies that fit the “broker” definition, but this delay – if it even happens – is likely only temporary.

Nikhilesh De contributed reporting.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Cheyenne Ligon

Cheyenne Ligon was a CoinDesk news reporter with a focus on crypto regulation and policy. She has no significant crypto holdings.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.