Government’s Proposal on Crypto Reporting

President Biden’s fiscal 2022 budget includes proposals to enhance crypto reporting on foreign-held digital assets to boost transparency.

Other topics on the proposal include:

o   Harsh penalties for the failure to disclose foreign accounts of digital assets; 

o   Making some classes of cryptos subject to mark-to-market rules; 

o   Having specific security laws for digital assets;

o   Having international cooperation between the U.S. and its partner countries on the exchange of information on ownership of digital assets, including brokers and financial institutions’ reporting. 

President Biden’s focus not only on international cooperation for tax avoidance but on having digital assets under the existing securities law, as it appears to be the growing opinion of policymakers.