The Blockchain Association, a cryptocurrency advocacy group in the United States, has expressed opposition to proposed tax regulations by the Internal Revenue Service (IRS). In a letter submitted on November 13, the association argued that the IRS rules, which aim to regulate the sale and exchange of digital assets, exceeded the agency’s authority and demonstrated a lack of understanding about decentralized technology. The proposed regulations, released by the U.S. Treasury Department in August, were intended to address challenges in reporting and paying taxes on cryptocurrency transactions. The Blockchain Association criticized the proposal, stating that many participants in the decentralized finance (DeFi) space would struggle to comply with the regulations. The association also raised concerns about potential violations of privacy and freedom of expression. The CEO of the Blockchain Association, Kristin Smith, called on the Treasury Department to take more time to understand the negative impact of the expanded broker definition on developers of decentralized technology. Since the release of the draft, various lawmakers, industry leaders, and legal experts have shared their perspectives on the potential implications of the proposed rules for crypto taxation. The current draft suggests that the rules could come into effect in 2026 for transactions conducted in 2025. Coinbase’s chief legal officer, Paul Grewal, warned that the rules could harm the nascent crypto industry. While some U.S. Senators support the regulations as written and have called for their enforcement before 2026, the debate surrounding crypto taxation continues.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Paul Grewal, Kristin Smith |
| Companies | The Blockchain Association, U.S. Senators, Internal Revenue Service (IRS), U.S. Treasury Department, Coinbase |
| Currencies | None |
| Securities | None |
