A bill to revise the rules of construction applicable to information reporting requirements imposed on brokers with respect to digital assets, and for other purposes.

Bill: 117-s-3249
Sponsor: full_name: Sen. Wyden, Ron [D-OR]
Introduced: 2021-11-18
Policy area: Finance and Financial Sector
Latest action: action_date: 2021-11-18
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2021-11-18
action_desc: Introduced in Senate
text: <p>This bill excludes certain persons from being considered a broker for tax reporting purposes. Under current law, the transfer of digital assets from a broker to a nonbroker requires the broker to file a return beginning on January 1, 2024. The bill provides that a broker does not include any person solely engaged in the business of (1) validating distributed ledger transactions, (2) selling hardware or software for which the sole function is to permit access to digital assets on a distributed ledger, or (3) developing digital assets or protocols for use by other persons who are not customers.</p>

tv_txt: II 117th CONGRESS 1st Session S. 3249 IN THE SENATE OF THE UNITED STATES November 18, 2021 Mr. Wyden (for himself and Ms. Lummis ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To revise the rules of construction applicable to information reporting requirements imposed on brokers with respect to digital assets, and for other purposes.

1. Rules of construction applicable to information reporting requirements imposed on brokers with respect to digital assets (a) In general Section 80603 of the Infrastructure Investment and Jobs Act is amended by striking subsection (d) and inserting the following: (d) Rule 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 person described in section 6045(c)(1)(D) of the Internal Revenue Code of 1986, as added by this section, includes any person solely engaged in the business of— (A) validating distributed ledger transactions, (B) selling hardware or software for which the sole function is to permit a person to control private keys which are used for accessing digital assets on a distributed ledger, or (C) developing digital assets or their corresponding protocols for use by other persons, provided that such other persons are not customers of the person developing such assets or protocols. (2) Brokers and treatment of digital assets 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. (e) Sense of Congress It is the sense of Congress that nothing in the amendments made by this section shall be construed to have any effect on the Securities Act of 1933 ( 15 U.S.C. 77a et seq. ) or the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ). . (b) Effective date The amendments made by this section shall take effect as if included in the enactment of section 80603 of the Infrastructure Investment and Jobs Act.