- US cryptocurrency regulations, long-awaited and spurred by Senator Elizabeth Warren, have been announced.
- The Treasury Department and the IRS have introduced new rules under the Infrastructure and Jobs Act of 2021, which are yet to be officially approved.
- Cryptocurrency miners and stakers are exempted from intermediary regulations.
The US has finally unveiled its much-anticipated cryptocurrency regulations, which were prompted by Senator Elizabeth Warren’s stance against crypto. The Treasury Department and the IRS, under the Infrastructure and Jobs Act of 2021, have proposed new rules. However, these rules are still awaiting official approval. Notably, cryptocurrency miners and stakers are exempt from these regulations.
New Cryptocurrency Regulations in the US
The US has finally revealed its long-anticipated cryptocurrency regulations. These regulations were prompted by the well-known crypto-skeptic, Senator Elizabeth Warren, who wrote letters to two institutions. The Treasury Department and the Internal Revenue Service (IRS) have announced new regulations under the Infrastructure and Jobs Act of 2021. These institutions have chosen to categorize digital asset intermediary companies as “trading platforms, digital asset payment providers, and wallet developers.” However, these new rules have not yet gained official status. If approved by Congress, they will be effective from 2026 for the tax year 2025.
Exemption for Cryptocurrency Miners and Stakers
Interestingly, individuals involved in cryptocurrency mining and staking have been exempted from intermediary regulations. This is a significant aspect of the new rules, as it recognizes the unique role these individuals play in the crypto ecosystem. Their activities are fundamentally different from those of trading platforms, digital asset payment providers, and wallet developers, and thus warrant different regulatory considerations.
Implications for Crypto Intermediary Companies
Under the new rules, companies earning commissions as crypto intermediaries will be required to fill out information declarations for all customers. In other words, customers will also need to be informed. This means that crypto intermediaries, mostly exchanges, will be subject to nearly the same rules as companies selling investment contracts. The Treasury Department stated that these new rules were introduced to prevent tax evasion activities.
Conclusion
In conclusion, the unveiling of these new cryptocurrency regulations in the US marks a significant step in the country’s approach to digital assets. While they are yet to gain official approval, they indicate a move towards greater transparency and accountability in the crypto sector. However, it remains to be seen how these regulations will be received by the crypto community and what impact they will have on the industry.
