New US crypto tax will exempt mining but cover the entire crypto industry

       The US is preparing to make a major change in its tax policies regarding crypto to deal with the problem of keeping crypto in the tax category.

Tax Net against Economic Freedom 

      Through the 2021 Infrastructure Investment and Jobs Act, the Treasury Department is making policies for which the US wants to make crypto an investment and employment-enhancing industry and bring it into the tax category. The IRS has proposed a new Form 1099-DA forthe crypto industry for tax reporting.

Who are / What is Taxed

     In the new law, "broker" has been kept in the tax net. Although the broker is not fully clarified, it is related to the digital asset. Trading platforms, wallet providers, payment processors, and asset issuers fall into this category, along with decentralised exchanges and unhosted wallets associated with crypto transactions.

Tax Exemption for Miners

       Activities such as PoW mining and fees for validating transactions on a distributed ledger are not considered brokers under this new law, so the mining industry will definitely be exempt from this new tax rule. It is quite possible that bitcoin and other PoW mining are either being promoted by the government or are benefiting influential people for some reason.

Brought to you by Yugocean, originally posted here.