What the Inflation Reduction Act Means for Cryptocurrency Regulation
For the crypto industry, many are looking for 2022 to be the year of comprehensive regulatory and legislative clarity regarding crypto assets for the United States. Indeed, President Biden’s Executive Order earlier this year actually mandated and directed federal agencies to provide this kind of clear, ordered, and meaningful guidance. We’ve seen in the past that parts and pieces of legislation that most would not consider crypto-focused sometimes actually contain very meaningful laws affecting the crypto ecosystem. For instance, the Infrastructure Act, signed into law last year, has changes in the definition of broker that will fundamentally mandate tax information reporting for many companies involved in the transacting of crypto. Now, yet another piece of legislation has appeared in headlines that would not appear to involve crypto assets, but actually does. The Senate has now passed the Inflation Reduction Act which has a number of sweeping changes in a wide variety of areas of the federal government, including the Internal Revenue Service.