This document makes several amendments to existing US tax law: 1) It expands the definition of "broker" to include those who regularly provide services transferring digital assets. 2) It requires brokers to report digital asset transfers and provides rules for tax reporting of digital asset transfers. 3) It clarifies that these amendments should not influence interpretation of related tax law for prior periods and does not modify securities laws. 4) It expresses the sense of Congress that the amendments do not impact existing securities laws.

1. EDW21A09 WG9 S.L.C.
2433
1 (i) in clause (i), by striking ‘‘and the
2 American Rescue Plan Act of 2021’’ both
3 places it appears and inserting ‘‘, the
4 American Rescue Plan Act of 2021, and
5 the Infrastructure Investment and Jobs
6 Act’’, and
7 (ii) in clause (ii), by striking ‘‘2029’’
8 and inserting ‘‘2034’’.
9 (B) STATEMENTS.—The Secretary of
10 Labor shall modify the statements required
11 under subclauses (I) and (II) of section
12 101(f)(2)(D)(i) of such Act to conform to the
13 amendments made by this section.
14 (c) EFFECTIVE DATE.—The amendments made by
15 this section shall apply with respect to plan years begin-
16 ning after December 31, 2021.
17 SEC. 80603. INFORMATION REPORTING FOR BROKERS AND
18 DIGITAL ASSETS.
19 (a) CLARIFICATION OF DEFINITION OF BROKER.—
20 Section 6045(c)(1) of the Internal Revenue Code of 1986
21 is amended—
22 (1) by striking ‘‘and’’ at the end of subpara-
23 graph (B),
24 (2) in subparagraph (C)—

2. EDW21A09 WG9 S.L.C.
2434
1 (A) by striking ‘‘any other person who (for
2 a consideration)’’ and inserting ‘‘any person
3 who (for consideration)’’, and
4 (B) by striking the period at the end and
5 inserting ‘‘, and’’, and
6 (3) by inserting after subparagraph (C) the fol-
7 lowing new subparagraph:
8 ‘‘(D) any person who (for consideration) is
9 responsible for regularly providing any service
10 effectuating transfers of digital assets on behalf
11 of another person.’’.
12 (b) REPORTING OF DIGITAL ASSETS.—
13 (1) BROKERS.—
14 (A) TREATMENT AS SPECIFIED SECU-
15 RITY.—Section 6045(g)(3)(B) of the Internal
16 Revenue Code of 1986 is amended by striking
17 ‘‘and’’ at the end of clause (iii), by redesig-
18 nating clause (iv) as clause (v), and by insert-
19 ing after clause (iii) the following new clause:
20 ‘‘(iv) any digital asset, and’’.
21 (B) DEFINITION OF DIGITAL ASSET.—Sec-
22 tion 6045(g)(3) of such Code is amended by
23 adding at the end the following new subpara-
24 graph:

3. EDW21A09 WG9 S.L.C.
2435
1 ‘‘(D) DIGITAL ASSET.—Except as other-
2 wise provided by the Secretary, the term ‘digital
3 asset’ means any digital representation of value
4 which is recorded on a cryptographically se-
5 cured distributed ledger or any similar tech-
6 nology as specified by the Secretary.’’.
7 (C) APPLICABLE DATE.—Section
8 6045(g)(3)(C) of such Code is amended—
9 (i) in clause (ii), by striking ‘‘and’’ at
10 the end,
11 (ii) by redesignating clause (iii) as
12 clause (iv), and
13 (iii) by inserting after clause (ii) the
14 following:
15 ‘‘(iii) January 1, 2023, in the case of
16 any specified security which is a digital
17 asset, and’’.
18 (2) FURNISHING OF INFORMATION.—
19 (A) IN GENERAL.—Section 6045A of such
20 Code is amended—
21 (i) in subsection (a), by striking ‘‘a
22 security which is’’, and
23 (ii) by adding at the end the fol-
24 lowing:

4. EDW21A09 WG9 S.L.C.
2436
1 ‘‘(d) RETURN REQUIREMENT FOR CERTAIN TRANS-
2 FERS OF DIGITAL ASSETS NOT OTHERWISE SUBJECT TO
3 REPORTING.—Any broker, with respect to any transfer
4 (which is not part of a sale or exchange executed by such
5 broker) during a calendar year of a covered security which
6 is a digital asset from an account maintained by such
7 broker to an account which is not maintained by, or an
8 address not associated with, a person that such broker
9 knows or has reason to know is also a broker, shall make
10 a return for such calendar year, in such form as deter-
11 mined by the Secretary, showing the information otherwise
12 required to be furnished with respect to transfers subject
13 to subsection (a).’’.
14 (B) REPORTING PENALTIES.—Section
15 6724(d)(1)(B) of such Code is amended by
16 striking ‘‘or’’ at the end of clause (xxv), by
17 striking ‘‘and’’ at the end of clause (xxvi), and
18 by inserting after clause (xxvi) the following
19 new clause:
20 ‘‘(xxvii) section 6045A(d) (relating to
21 returns for certain digital assets),’’.
22 (3) TREATMENT AS CASH FOR PURPOSES OF
23 SECTION 6050I.—Section 6050I(d) of such Code is
24 amended by striking ‘‘and’’ at the end of paragraph
25 (1), by striking the period at the end of paragraph

5. EDW21A09 WG9 S.L.C.
2437
1 (2) and inserting ‘‘, and’’, and by inserting after
2 paragraph (2) the following new paragraph:
3 ‘‘(3) any digital asset (as defined in section
4 6045(g)(3)(D)).’’.
5 (c) EFFECTIVE DATE.—The amendments made by
6 this section shall apply to returns required to be filed, and
7 statements required to be furnished, after December 31,
8 2023.
9 (d) RULE OF CONSTRUCTION.—Nothing in this sec-
10 tion or the amendments made by this section shall be con-
11 strued to create any inference, for any period prior to the
12 effective date of such amendments, with respect to—
13 (1) whether any person is a broker under sec-
14 tion 6045(c)(1) of the Internal Revenue Code of
15 1986, or
16 (2) whether any digital asset is property which
17 is a specified security under section 6045(g)(3)(B)
18 of such Code.
19 SEC. 80604. TERMINATION OF EMPLOYEE RETENTION
20 CREDIT FOR EMPLOYERS SUBJECT TO CLO-
21 SURE DUE TO COVID–19.
9 (d) RULE OF CONSTRUCTION.-
10 (1) DEFINITION OF BROKER. – Nothing in this
11 section of the amendments made by this section
12 shall be construed to create any inference that a per-
13 son described in section 6045(c)(1)(D) of the Inter-
14 nal Revenue Code of 1986, as added by this section,
15 includes any person solely engaged in the business

6. EDW21A09 WG9 S.L.C.
2438
16 of-
17 (A) validating distributed ledger trans-
18 actions,
19 (B) selling hardware or software for which
20 the sole function is to permit a person to con-
21 trol private keys which are used for accessing
22 digital assets on a distributed ledger, or
23 (C) (A) developing digital assets or their cor-
24 responding protocols for use by other persons,
25 provided that such other persons are not cus-
26 tomers of the person developing such assets or
27 protocols.
28 (2) BROKERS AND TREATMENT OF DIGITAL AS-
29 SETS.—Nothing in this section or the amendments
30 made by this section shall be construed to create any
31 inference, for any period prior to the effective date
32 of such amendments, with respect to—
33 (A) whether any person is a broker under
34 section 6045(c)(1) of the Internal Revenue
35 Code of 1986, or
36 (B) whether any digital asset is property
37 which is a specified security under section
38 6045(g)(3)(B) of such Code.
39 SEC. 80604. SENSE OF CONGRESS.
40 It is the sense of Congress that nothing in the amend-
41 ments made by section 80603 shall be construed to have
42 any effect on the Securities Act of 1933 (15 U.S.C. 77a
43 et seq.) or the Securities Exchange Act of 1934 (15 U.S.C.

7. EDW21A09 WG9 S.L.C.
2439
44
45 SEC. 80605. TERMINATION OF EMPLOYEE RETENTION
46 CREDIT FOR EMPLOYERS SUBJECT TO CLO-
47 SURE DUE TO COVID–19.