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US Treasury, Internal Revenue Service Introduce Comprehensive Set Of Cryptocurrency Regulations

The move shows growing importance of digital assets and the government's commitment to ensuring their transparent and lawful use.

Two major U.S. federal agencies — the Department of the Treasury and the Internal Revenue Service (IRS) — have jointly introduced a comprehensive set of cryptocurrency regulations.

The initiative underscores the growing importance of digital assets in the financial landscape and the government’s commitment to ensuring their transparent and lawful use.

Representation of Bitcoin and other cryptocurrencies. The Department of the Treasury and the Internal Revenue Service (IRS) of the United States have jointly introduced a comprehensive set of cryptocurrency regulations. (JAKUB PORZYCKI/NURPHOTO/GETTY IMAGES)

The proposed regulations primarily address information reporting, the determination of the amount realized, basis, and backup withholding for certain digital asset sales and exchanges. These guidelines are rooted in both existing authority and the provisions of the Infrastructure Investment and Jobs Act.

Representation of Bitcoin and other cryptocurrencies. The Department of the Treasury and the Internal Revenue Service (IRS) of the United States have jointly introduced a comprehensive set of cryptocurrency regulations. (JAKUB PORZYCKI/NURPHOTO/GETTY IMAGES)

Key Highlights

  • Expanded Definition Of Brokers: Digital asset trading platforms, payment processors, and certain hosted wallets are now encompassed within the definition of brokers. These entities are mandated to file information returns and provide payee statements for digital asset transactions executed on behalf of their clients.
  • Real Estate Transactions: Real estate reporting entities, now deemed as brokers for specific real estate transactions, are required to report the fair market value of digital asset considerations received by sellers. Additionally, they must file returns for real estate buyers who transact using digital assets.
  • Clarification On Digital Asset Terminology: The regulations provide clear definitions related to digital assets, describing them as digital representations of value, secured using cryptography and recorded on distributed ledgers, such as blockchains.
  • Public Participation: The IRS has scheduled a public hearing on these proposed regulations for Nov. 7, 2023, with a potential second hearing on Nov. 8, 2023, depending on public response. StakehZenger News are encouraged to submit their comments and requests for participation by Oct. 30, 2023.

Bitcoin, Ethereum and Dogecoin were seen largely flat on Tuesday evening as the global cryptocurrency market cap inched up 0.4% to $1.04 trillion at the time of publishing.

The cryptocurrency news landscape on Tuesday was largely dominated by The Financial Accounting Standards Board (FASB) reaching a unanimous decision to endorse regulations for the accounting of fair values associated with companies’ cryptocurrency holdings. These regulations are scheduled to become effective in the year 2025.

 

© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.

Produced in association with Benzinga

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