MFA Submits Comment Letter to Treasury and the IRS on the 2022-2023 Priority Guidance Plan

On June 3, 2022, MFA submitted a comment letter to the the Department of the Treasury and the Internal Revenue Service with recommendations to be included on the 2022-2023 Priority Guidance Plan.

In the letter, MFA explains that the Treasury and the IRS should issue guidance providing that the commodities trading safe harbor broadly applies to trading in cryptocurrency. Such guidance meets the criteria specified in Notice 2022-21 and would further the policy goals of the Executive Order by promoting the competitiveness of U.S. capital markets at a time when other governments are actively pursuing similar safe harbor rules applicable to trading in cryptocurrency.  MFA addresses these criteria in turn:

  • The recommended guidance would provide the necessary comfort level for the alternative investment industry to pursue investments in cryptocurrency.
  • The recommended guidance reduces controversy involving the securities and commodities trading safe harbors and lessens the burden on taxpayers and the IRS.
  • The recommended guidance relates to policy priorities with national and international significance.
  • The recommended guidance involves issues for which guidance to date has been insufficient and for which there is no alternative.
  • The recommended guidance promotes sound tax administration; can be administered on a uniform basis; and can be drafted in a manner that will enable taxpayers to easily understand and apply the guidance.