- The US Treasury Department is looking to clear up confusion on the new crypto tax reporting requirements.
- The unnamed individual who spoke to Bloomberg said that the Treasury would not go after digital asset companies that do not qualify as a “broker.”
- The guidance from the Treasury is expected to be made public next week.
The United States Treasury Department is looking to clarify the definition of a “broker” in the highly debated infrastructure bill that aims to raise $28 billion in cryptocurrency taxes. According to Bloomberg, new guidance is being prepared to streamline which types of digital asset firms would be subjected to the new reporting requirements.
Treasury to provide clearer crypto tax guidelines
The infrastructure bill passed by the Senate last week would categorize individuals who are developing blockchain technology and wallets to also report to the Internal Revenue Service (IRS) and cryptocurrency exchanges that act as brokers.
The Treasury Department is now seeking to make it clear that miners and wallet providers would not be subjected to the new reporting requirements as long as they do not provide brokerage services.
According to an unnamed individual who spoke to Bloomberg, the Treasury is further preparing guidance to clarify which cryptocurrency companies would need to comply with the IRS reporting requirements.
The Treasury’s guidance will not provide blanket exemptions based on how the digital asset companies identify themselves but will focus on whether the firm has conducted activity that would qualify as a broker under the tax code.
Currently, the unnamed individual explained that the guidance is being discussed internally but could be made public as soon as next week.
This clarification is an attempt to address the concerns within the cryptocurrency community arising from the $550 billion infrastructure bill that would require crypto firms to report data to the IRS.
Lawmakers that have tried to revise the crypto language in the bill were unsuccessful, as amending the digital asset section would open up the whole legislation to more revisions.
Leading industry advocates, including Coinbase CEO Brian Armstrong, have openly criticized the bill, saying that the government is “trying to pick winners and losers in a nascent industry.”
Elon Musk also added that it was not the time to “pick technology winners or losers,” further commenting that the legislation was hasty.
Bitcoin price heads for next hurdle above $47,000
Bitcoin price has surged above $47,000 as it gears up toward facing its next challenge. While continuing to form an inverse head-and-shoulders pattern on the 12-hour chart, BTC is confronted by a resistance line at $47,987 given by the Momentum Reversal Indicator (MRI), which could act as a stiff obstacle for the bellwether cryptocurrency.
For the measured target of the governing technical pattern to materialize, Bitcoin price must slice above the aforementioned resistance level, as well as the neckline of the chart pattern at $49,735 for BTC to target bigger aspirations.
The following hurdle for Bitcoin price appears to be at the 61.8% Fibonacci extension level at $51,167.
BTC/USDT 12-hour chart
Should a confirmation from the Treasury Department regarding the new guidance on crypto tax rules arrive next week, the bulls may also be incentivized to target higher levels.
However, should Bitcoin price witness a reversal of fortune, immediate support arises at the 50% Fibonacci extension level at $46,901, then the 20 twelve-hour Simple Moving Average (SMA) at $45,538.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Kyber exploiter asks for complete control of all assets after nearly $50 million exploit

Kyber network exploiter drained the protocol’s liquidity pools of nearly $50 million on November 22. The team behind Kyber managed to recover $4.67 million and communicated with the exploiter for the remainder of assets.
Chainlink supply on exchanges hits lowest point since 2020, with LINK staking v0.2 launch

Chainlink supply on exchanges declined to a level previously seen in February 2020. LINK staking v0.2 went live on November 28, attracting 68% of staked tokens from v0.1.
Bitcoin Spot ETF applications see amendments, holders await January batch approval

Bitcoin Spot ETF race has late entrants and updates from BlackRock, according to James Seyffart. BTC Spot ETF approval anticipation has fueled a rally in both spot and futures markets.
Ethereum Price Prediction: ETH top-down analysis hints upside is capped at $2,500

Ethereum price trades in a clear consolidative trend on the weekly time frame between $1,933 and $2,141 barriers. The daily chart for ETH shows a sweep of Monday’s high is likely to be followed by a sweep of Monday’s low at $1,985.
Three key BTC accumulation levels before ETF approval in January 2024

Bitcoin, from a high time-frame perspective, has been in an up-only trend since the start of 2023. BTC has ignored many sell signals due to the likelihood of an Exchange-Traded Fund approval. With the holidays around the corner, falling liquidity could see BTC discounted from its current level, hovering around the $37,000 region.