[Congressional Record Volume 167, Number 144 (Monday, August 9, 2021)]
[Senate]
[Pages S6131-S6132]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2656. Mr. TOOMEY (for himself, Mr. Warner, Ms. Lummis, Ms. Sinema, 
and Mr. Portman) submitted an amendment intended to be proposed by him 
to the bill H.R. 3684, to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike section 80603 and insert the following:

     SEC. 80603. INFORMATION REPORTING FOR BROKERS AND DIGITAL 
                   ASSETS.

       (a) Clarification of Definition of Broker.--Section 
     6045(c)(1) of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of subparagraph (B),
       (2) in subparagraph (C)--
       (A) by striking ``any other person who (for a 
     consideration)'' and inserting ``any person who (for 
     consideration)'', and
       (B) by striking the period at the end and inserting ``, 
     and'', and
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) any person who (for consideration) regularly 
     effectuates transfers of digital assets on behalf of another 
     person.''.
       (b) Reporting of Digital Assets.--
       (1) Brokers.--

[[Page S6132]]

       (A) Treatment as specified security.--Section 6045(g)(3)(B) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``and'' at the end of clause (iii), by redesignating clause 
     (iv) as clause (v), and by inserting after clause (iii) the 
     following new clause:
       ``(iv) any digital asset, and''.
       (B) Definition of digital asset.--Section 6045(g)(3) of 
     such Code is amended by adding at the end the following new 
     subparagraph:
       ``(D) Digital asset.--Except as otherwise provided by the 
     Secretary, 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 Secretary.''.
       (C) Applicable date.--Section 6045(g)(3)(C) of such Code is 
     amended--
       (i) in clause (ii), by striking ``and'' at the end,
       (ii) by redesignating clause (iii) as clause (iv), and
       (iii) by inserting after clause (ii) the following:
       ``(iii) January 1, 2023, in the case of any specified 
     security which is a digital asset, and''.
       (2) Furnishing of information.--
       (A) In general.--Section 6045A of such Code is amended--
       (i) in subsection (a), by striking ``a security which is'', 
     and
       (ii) by adding at the end the following:
       ``(d) Return Requirement for Certain Transfers of Digital 
     Assets Not Otherwise Subject to Reporting.--Any broker, with 
     respect to any transfer (which is not part of a sale or 
     exchange executed by such broker) 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 by, or an address not associated with, a person 
     that such broker knows or has reason to know is also a 
     broker, shall make a return for such calendar year, in such 
     form as determined by the Secretary, showing the information 
     otherwise required to be furnished with respect to transfers 
     subject to subsection (a).''.
       (B) Reporting penalties.--Section 6724(d)(1)(B) of such 
     Code is amended by striking ``or'' at the end of clause 
     (xxv), by striking ``and'' at the end of clause (xxvi), and 
     by inserting after clause (xxvi) the following new clause:
       ``(xxvii) section 6045A(d) (relating to returns for certain 
     digital assets),''.
       (3) Treatment as cash for purposes of section 6050i.--
     Section 6050I(d) of such Code is amended by striking ``and'' 
     at the end of paragraph (1), by striking the period at the 
     end of paragraph (2) and inserting ``, and'', and by 
     inserting after paragraph (2) the following new paragraph:
       ``(3) any digital asset (as defined in section 
     6045(g)(3)(D)).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns required to be filed, and statements 
     required to be furnished, after December 31, 2023.
       (d) Rules of Construction.--
       (1) 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 
     6045(c)(1)(D) of the Internal Revenue Code of 1986, as added 
     by this section, includes any person solely engaged in the 
     business of--
       (A) validating distributed ledger transactions, without 
     providing other functions or services, or
       (B) selling hardware or software for which the sole 
     function is to permit persons to control private keys which 
     are used for accessing digital assets on a distributed 
     ledger.
       (2) Brokers and treatment of digital assets.--Nothing in 
     this section or the amendments made by this section shall be 
     construed to create any inference, for any period prior to 
     the effective date of such amendments, with respect to--
       (A) whether any person is a broker under section 6045(c)(1) 
     of the Internal Revenue Code of 1986, or
       (B) whether any digital asset is property which is a 
     specified security under section 6045(g)(3)(B) of such Code.
                                 ______