,i  #aagth ,,congress  #ast ,session    
,h4 ,r4 #ejhc  ,,in ,,the ,,house ,,of  
,,representatives  ,august #bc1         
#bjba,mr4 ,soto introduced the following
 bill2 which was referred to the        
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to clarify the          
definition of a broker1 and for other   
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,cryptocurrency ,tax
 ,reform ,act4  #b4 ,information        
reporting for brokers and digital assets
  7a7 ,clarification of definition of   
broker ,section #fjde7;c77#a7 of the    
,internal ,revenue ,code of #aihf is    
amended-- 7#a7 by striking and at the   
end of subparagraph 7,b71  7#b7 in      
subparagraph 7,c7-- 7,a7 by striking any
 other person who 7for a consideration7 
and inserting any person who 7for       
consideration71 and  7,b7 by striking   
the period at the end and inserting 1   
and1 and  7#c7 by adding at the end the 
following new subparagraph3  7,d7 any   

person who 7for consideration7 is       
responsible for regularly providing any 
service effectuating transfers of       
digital assets on behalf of another     
person4  4  7b7 ,reporting of digital   
assets  7#a7 ,brokers  7,a7 ,treatment  
as specified security ,section          
#fjde7;g77#c77;,b7 of the ,internal     
,revenue ,code of #aihf is amended by   
striking and at the end of clause 7iii71
 by redesignating clause 7iv7 as clause 
7v71 and by inserting after clause 7iii7
 the following new clause3  7iv7 any    
digital asset1 and  4  7,b7 ,definition 
of digital asset ,section #fjde7;g77#c7 
of such ,code is amended by adding at   
the end the following new subparagraph3 
7,d7 ,digital asset ,except as otherwise
 provided by the ,secretary1 the term   
digital asset means any digital         
representation of value which is        
recorded on a cryptographically secured 
distributed ledger or any similar       
technology as specified by the          
,secretary4  4  7,c7 ,applicable date   

,section #fjde7;g77#c77;,c7 of such     
,code is amended-- 7i7 in clause 7ii71  
by striking and at the end1  7ii7 by    
redesignating clause 7iii7 as clause    
7iv71 and  7iii7 by inserting after     
clause 7iii7 the following3  7iii7      
,january #a1 #bjbc1 in the case of any  
specified security which is a digital   
asset1 and  4  7#b7 ,furnishing of      
information  7,a7 ,in general ,section  
#fjde;,a of such ,code is amended-- 7i7 
in subsection 7a71 by striking a        
security which is1 and  7ii7 by adding  
at the end the following3  7b7 ,return  
requirement for certain transfers of    
digital assets not otherwise subject to 
reporting ,any broker1 with respect to  
any transfer 7which is not part of a    
sale or exchange executed by such       
broker7 during a calendar year of a     
covered security which is a digital     
asset from an account maintained by such
 broker to an account which is not      
maintained by1 or an address not        
associated with1 a person that such     

broker knows or has reason to know is   
also a broker1 shall make a return for  
such calendar year1 in such form as     
determined by the ,secretary1 showing   
the information otherwise required to be
 furnished with respect to transfers    
subject to subsection 7a74  4  7,b7     
,reporting penalties ,section           
#fgbd7;d77#a77;,b7 of such ,code is     
amended by striking or at the end of    
clause 7xxv71 by striking and at the end
 of clause 7xxvi71 and by inserting     
after clause 7xxvi7 the following new   
clause3  7xxvii7 section #fjde;,a7d7    
7relating to returns for certain digital
 assets71  4  7,c7 ,treatment as cash   
for purposes of section #fjej;,i        
,section #fjej;,i7d7 of such ,code is   
amended by striking and at the end of   
paragraph 7#a71 by striking the period  
at the end of paragraph 7#b7 and        
inserting 1 and1 and by inserting after 
paragraph 7#b7 the following new        
paragraph3  7#c7 any digital asset 7as  
defined in section #fjde7;g77#c77;,d74  

4  7c7 ,effective date ,the amendments  
made by this section shall apply to     
returns required to be filed1 and       
statements required to be furnished1    
after ,december #ca1 #bjbc4  7d7 ,rules 
of construction  7#a7 ,definition of    
broker ,nothing in this section or the  
amendments made by this section shall be
 construed to create any inference that 
a person described in section           
#fjde7;c77#a77;,d7 of the ,internal     
,revenue ,code of #aihf1 as added by    
this section1 includes any person solely
 engaged in the business of-- 7,a7      
validating distributed ledger           
transactions1  7,b7 selling hardware or 
software for which the sole function is 
to permit a person to control private   
keys which are used for accessing       
digital assets on a distributed ledger1 
or  7,c7 developing digital assets or   
their corresponding protocols for use by
 other persons1 provided that such other
 persons are not customers of the person
 developing such assets or protocols4   

7#b7 ,brokers and treatment of digital  
assets ,nothing in this section or the  
amendments made by this section shall be
 construed to create any inference1 for 
any period prior to the effective date  
of such amendments1 with respect to--   
7,a7 whether any person is a broker     
under section #fjde7;c77#a7 of the      
,internal ,revenue ,code of #aihf1 or   
7,b7 whether any digital asset is       
property which is a specified security  
under section #fjde7;g77#c77;,b7 of such
 ,code4