Crypto Miners, Wallet Makers May Not Be Digital Asset Brokers, Strategist Says

Speaking at a July 26 webinar hosted by the Tax Policy Center, John Schoenecker, government relations and regulatory strategy director for crypto tax software provider TaxBit, said who is considered a digital asset broker under Code Sec. The late 2021 bill enacted crypto information reporting rules under Code Sec. 2022 served as a grace period to allow taxpayers to get in the habit of recordkeeping and time for the IRS to come out with guidance on who is a digital asset broker. Under the IIJA, a digital asset means “any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified” by Treasury. Lawmakers since then have called for the IRS to prioritize the regs amid debates over how limited in scope the definition of a digital asset broker should be.