I 
117TH CONGRESS 
1ST SESSION H. R. 5082 
To amend the Internal Revenue Code of 1986 to clarify the definition of 
a broker, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 23, 2021 
Mr. SOTO introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to clarify 
the definition of a broker, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Cryptocurrency Tax 
Clarity Act’’. 
SEC. 2. INFORMATION REPORTING FOR BROKERS AND DIG-
ITAL ASSETS. 
(a) CLARIFICATION OF DEFINITION OF BROKER.— 
Section 6045(c)(1) of the Internal Revenue Code of 1986 
is amended— 
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(1) by striking ‘‘and’’ at the end of subpara-
graph (B), 
(2) in subparagraph (C)— 
(A) by striking ‘‘any other person who (for 
a consideration)’’ and inserting ‘‘any person 
who (for consideration)’’, and 
(B) by striking the period at the end and 
inserting ‘‘, and’’, and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) any person who (for consideration) 
regularly effectuates transfers of digital assets 
on behalf of another person.’’. 
(b) REPORTING OF DIGITAL ASSETS.— 
(1) BROKERS.— 
(A) TREATMENT
AS
SPECIFIED
SECU-
RITY.—Section 6045(g)(3)(B) of the Internal 
Revenue Code of 1986 is amended by striking 
‘‘and’’ at the end of clause (iii), by redesig-
nating clause (iv) as clause (v), and by insert-
ing after clause (iii) the following new clause: 
‘‘(iv) any digital asset, and’’. 
(B) DEFINITION OF DIGITAL ASSET.—Sec-
tion 6045(g)(3) of such Code is amended by 
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adding at the end the following new subpara-
graph: 
‘‘(D) DIGITAL
ASSET.—Except as other-
wise provided by the Secretary, the term ‘digital 
asset’ means any digital representation of value 
which is recorded on a cryptographically se-
cured distributed ledger or any similar tech-
nology as specified by the Secretary.’’. 
(C) 
APPLICABLE
DATE.—Section 
6045(g)(3)(C) of such Code is amended— 
(i) in clause (ii), by striking ‘‘and’’ at 
the end, 
(ii) by redesignating clause (iii) as 
clause (iv), and 
(iii) by inserting after clause (iii) the 
following: 
‘‘(iii) January 1, 2023, in the case of 
any specified security which is a digital 
asset, and’’. 
(2) FURNISHING OF INFORMATION.— 
(A) IN GENERAL.—Section 6045A of such 
Code is amended— 
(i) in subsection (a), by striking ‘‘a 
security which is’’, and 
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(ii) by adding at the end the fol-
lowing: 
‘‘(b) RETURN REQUIREMENT FOR CERTAIN TRANS-
FERS OF DIGITAL ASSETS NOT OTHERWISE SUBJECT TO 
REPORTING.—Any broker, with respect to any transfer 
(which is not part of a sale or exchange executed by such 
broker) during a calendar year of a covered security which 
is a digital asset from an account maintained by such 
broker to an account which is not maintained by, or an 
address not associated with, a person that such broker 
knows or has reason to know is also a broker, shall make 
a return for such calendar year, in such form as deter-
mined by the Secretary, showing the information otherwise 
required to be furnished with respect to transfers subject 
to subsection (a).’’. 
(B) 
REPORTING
PENALTIES.—Section 
6724(d)(1)(B) of such Code is amended by 
striking ‘‘or’’ at the end of clause (xxv), by 
striking ‘‘and’’ at the end of clause (xxvi), and 
by inserting after clause (xxvi) the following 
new clause: 
‘‘(xxvii) section 6045A(d) (relating to 
returns for certain digital assets),’’. 
(C) TREATMENT AS CASH FOR PURPOSES 
OF SECTION 6050I.—Section 6050I(d) of such 
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Code is amended by striking ‘‘and’’ at the end 
of paragraph (1), by striking the period at the 
end of paragraph (2) and inserting ‘‘, and’’, 
and by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) any digital asset (as defined in section 
6045(g)(3)(D).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to returns required to be filed, and 
statements required to be furnished, after December 31, 
2023. 
(d) RULES OF CONSTRUCTION.— 
(1) DEFINITION OF BROKER.—Nothing in this 
section or the amendments made by this section 
shall be construed to create any inference that a per-
son described in section 6045(c)(1)(D) of the Inter-
nal Revenue Code of 1986, as added by this section, 
includes any person solely engaged in the business 
of— 
(A) validating distributed ledger trans-
actions, without providing other functions or 
services, or 
(B) selling hardware or software for which 
the sole function is to permit persons to control 
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private keys which are used for accessing digital 
assets on a distributed ledger. 
(2) BROKERS AND TREATMENT OF DIGITAL AS-
SETS.—Nothing in this section or the amendments 
made by this section shall be construed to create any 
inference, for any period prior to the effective date 
of such amendments, with respect to— 
(A) whether any person is a broker under 
section 6045(c)(1) of the Internal Revenue 
Code of 1986, or 
(B) whether any digital asset is property 
which is a specified security under section 
6045(g)(3)(B) of such Code. 
Æ 
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