Global Blockchain Business Council (GBBC) and GBBC Digital Finance (GDF) have submitted a response to the U.S. Treasury Department and Internal Revenue Service (IRS) REG–122793–19, which aims to address the reporting of gross proceeds and basis by brokers as well as determination of amount realized and basis for digital asset transactions.
A special thank you to our GBBC and GDF members who contributed to this response. We appreciate the opportunity to provide comments to Treasury and IRS on this critical topic as the government considers developing a framework for enhancing U.S. economic competitiveness and innovation for digital assets and DLT infrastructure.
- In our response, we encourage the Treasury Department and IRS to:
- Eliminate ‘Digital Assets Payment Processor’ from the definition of ‘Broker’;
- Exempt self-hosted wallets and node operators from the definition of ‘digital asset middleman’;
- Narrow the definition of ‘facilitative service’ to apply to only services that directly effectuates a sale of digital assets;
- Exempt fiat-backed stablecoins from the broker reporting requirements;
- Align the data elements required to be collected and reported with the traditional broker requirements;
- Delay implementation of the non-U.S. broker rules for non-U.S. brokers to allow it to align with other international standards; and
- Align the date for determining in-scope digital assets with the overall effective date of the digital asset broker requirements.
Read the full response here: https://www.regulations.gov/comment/IRS-2023-0041-44108