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Broker Definition Expansion

Definition ∞ Broker definition expansion refers to broadening the legal scope of who qualifies as a broker. Traditionally, this term applied to intermediaries in conventional securities markets. In the digital asset sector, this expansion seeks to include various entities facilitating crypto transactions. It aims to subject more participants to regulatory oversight.
Context ∞ The current debate surrounding broker definition expansion is a central issue in cryptocurrency regulation, particularly in the United States. Legislative proposals often seek to extend broker responsibilities to miners, validators, and decentralized exchange operators. This development could significantly alter operational requirements and compliance burdens for a wide array of digital asset service providers.

A close-up view reveals intricate internal mechanisms featuring translucent blue components, polished metallic shafts, and precise white circular elements. This complex assembly visually represents a distributed ledger's core protocol architecture, emphasizing seamless data flow and cryptographic hashing. The transparent structures suggest immutable transaction visibility within a blockchain network, while the interconnected parts symbolize a robust consensus mechanism. This design embodies the precision required for secure smart contract execution and network scalability, illustrating the underlying engineering of decentralized finance.

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IRS Finalizes Digital Asset Broker Rules Mandating Standardized Tax Reporting

Digital asset brokers must now overhaul compliance systems to track cost basis and issue Form 1099-DA, standardizing tax reporting across the industry.