Recently, crypto mining has been a burning topic in the US. On February 14, the US Treasury confirmed that crypto miners and wallet operators are exempt from the IRS reporting rules. This is a significant win for the cryptocurrency industry in the US.
Crypto Stakers to Be Excluded as Well
According to the letter that the Treasury sent to a group of ministers, the tax reporting requirements for brokers won’t capture crypto miners, stakers, and manufacturers of hardware and software wallets.
According to the letter, those parties who can’t access information valuable to the IRS won’t be required to submit reports. Additionally, validators are unlikely to know which transactions are a part of a sale, and those that sell mining equipment are not dealing with brokerage services.
The letter also notes that the Treasury will consider “the extent to which other parties in the digital asset market, such as centralized exchanges and those often described as decentralized exchanges and peer-to-peer exchanges, should be treated as brokers”. According to many, defining the broker in the crypto space will play a key role in deciding on further legislation.