Conversation

SBF
@SBF_FTX
1) There's a bill in the Senate right now about tax reporting and crypto. What does it say, and what impact would it have?
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SBF
@SBF_FTX
2) Well, the first thing worth noting: there are a few different versions of it floating around, as various people have suggested amendments for it. Let's start with the original phrasing.
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SBF
@SBF_FTX
3) The bill, originally, would create tax reporting requirements for "any person who (for consideration) is responsible for and regularly provides any service effectuating transfers of digital assets.” They would have to send reports on US users' activity to the IRS.
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SBF
@SBF_FTX
4) The goal, roughly, is to get crypto exchanges* to send info to the IRS so it knows if an American made money trading crypto and can tax it. *I'm using 'exchange' here in the crypto sense, as a full-stack product; the equivalent in other industries here is really the broker.
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Atreus ⚒️
@Atreus_Fi
Replying to
@SBF_FTX
How can an exchange be considered a broker? How does ftx.us satisfy the duty of best execution and "determine the best market for a security so that the price to the customer is as favorable as possible under prevailing market conditions."?
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Atreus ⚒️
@Atreus_Fi
Replying to
@SBF_FTX
For sure but best execution obligation comes along with the broker registration. I'm just illustrating one of the many issues and conflicts encountered when attempting to apply the Exchange Act to crypto. The headline sounds great but the details will require lots o' amendments.