Garrett L. Brodeur was quoted in a recent Tax Notes article titled “Senators Push IRS for Timeline on Delayed Crypto Guidance,” published on August 3, 2023. On August 1, 2023, Senators Elizabeth Warren (D-MA), Bob Casey Jr. (D-PA), Richard Blumenthal (D-CT), and Bernie Sanders (I-VT) of the Senate Finance Committee wrote a letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel urging the Treasury Department to propose regulations for tax reporting by “brokers” of digital asset transactions.
The article notes:
Garrett L. Brodeur of Kostelanetz LLP argued that the Senate letter’s interchangeable use of the terms “digital asset brokers” and “cryptocurrency brokers” — despite possibly encompassing different actors — showcases the complications of issuing regulations in a constantly changing industry.
“The letter is therefore an illustration of the challenge in crafting the reporting regulations: Which parties should the regulations govern and which regulatory language is best tailored to govern those parties?” Brodeur said…
Brodeur said that while it’s impossible to know what has caused the delay, the proposed regs under section 6045 will be the first of their kind for tax regulations on digital assets, so the pressure to get it right, mixed with the technical details and competing interests in a rapidly changing industry, could be to blame.
“This challenge is amplified by the fact that Treasury is soliciting comments from the industry on issues relating to reporting and is (correctly) taking the time to consider those comments,” Brodeur said.
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