Senators Elizabeth Warren, Bernie Sanders, and Sheldon Whitehouse have urged the Treasury Department to enforce new reporting requirements on Bitcoin and digital asset brokers.
The new requirements were included in the Infrastructure Investment and Jobs Act, which was signed into law by President Biden in November 2021. The requirements require cryptocurrency brokers to report certain information to the Internal Revenue Service (IRS), including the identity of their customers and the amount of cryptocurrency they trade.
A Wild West of unregulated activity
In their letter to Treasury Secretary Janet Yellen, the senators argued that the new requirements are necessary to prevent cryptocurrency from being used to facilitate tax evasion, money laundering, and other illegal activities.
“The cryptocurrency industry is a Wild West of unregulated activity,” the senators wrote. “Without strong enforcement of these new reporting requirements, criminals will continue to use cryptocurrency to evade taxes, launder money, and finance terrorism.”
The senators also expressed concern that the Treasury Department has not yet issued guidance on how the new requirements will be implemented. They called on the agency to provide clear guidance as soon as possible.
No Response from Treasury Yet
The Treasury Department has not yet responded to the senators’ letter.
The new reporting requirements are a significant step forward in the regulation of the cryptocurrency industry. However, it is important that the Treasury Department provide clear guidance on how the requirements will be implemented. This will help to ensure that the requirements are effective in preventing illegal activity.