The US-based crypto sphere is reportedly going to secure a significant legal advantage, since the US Treasury Department aims to offer crypto miners and other “ancillary parties” tax exemption.

Specifically, via a letter to a group of senators on Friday, the U.S. Treasury reportedly included details of a plan down its pipeline to provide exemption to crypto miners, stakers and different market participants, from regulations mandating crypto brokers to share data on their clients’ transactions with the Internal Revenue Service.

“Appreciate the Treasury Department affirming that crypto miners, stakers and those who sell hardware and software for wallets are not subject to tax reporting obligations,” Senator Rob Portman reportedly took to Twitter to reveal the update. 

In the letter, Treasury Assistant Secretary for Legislative Affairs Jonathan Davidson further claimed that the perspective of the department is that “ancillary parties who cannot get access to information that is useful to the IRS are not intended to be captured by the reporting requirements for brokers.”

Davidson additionally highlighted that it is likely not possible for crypto validators to be aware of the fact if a transaction belongs to a sale, while the parties that provide offerings associated with hardware or software crypto wallets “are not carrying out broker activities.”

The Treasury will further take into consideration “the extent to which other parties in the digital asset market, such as centralized exchanges and those often described as decentralized exchanges and peer-to-peer exchanges, should be treated as brokers”. 

The Treasury is reportedly also working towards a goal of coming up with proposed regulations to cover its attitude on the broker definition.

Previously, U.S. President Joe Biden reportedly put his signature on the $1-trillion infrastructure bill in mid-November last year, making it mandatory for crypto market participants to report every virtual asset transaction with a value exceeding the $10,000 benchmark to the IRS.