US Treasury Delays Business Crypto Reporting Amid Regulatory Uncertainty

Table of Contents

• Key Takeaways
• Delayed Reporting Requirements
• Positive Industry Reactions

Key Takeaways

The Treasury Department and IRS have postponed enforcing new crypto transaction reporting rules for businesses.

The regulations were part of the Infrastructure Investment and Jobs Act which classified digital assets as “cash” for reporting purposes.

Delayed Reporting Requirements

The Infrastructure Act required businesses to report crypto transactions over $10,000 to the IRS, shifting the onus from exchanges to individuals using peer-to-peer and non-custodial wallets. However, the IRS specified that regulations needed to be issued before the new rules take effect.

While Form 8300 for cash transactions over $10,000 still applies as per previous rules, enforcement of crypto reporting has been delayed.

The Treasury and IRS are working on proposed regulations to clarify the new reporting process for digital assets. They are also inviting public comments and potentially holding public hearings.

Positive Industry Reactions

The IRS announcement was welcomed by the Blockchain Association and a16z Crypto’s Miles Jennings who tweeted that the original requirement was “complex and broadly impactful.”

The Blockchain Association tweeted, “We appreciate Treasury and the IRS taking a deliberate, thorough approach…”

Miles Jennings tweeted, “Good news for the crypto ecosystem while we wait for thoughtful implementation.”

Hope this helps! Let me know if you’d like me to modify or expand the article in any way.

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