S.Amdt. 2656

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.--

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(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.
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