Crypto news

Crypto community responds to Joe Biden’s proposed tax reporting rules for cryptocurrencies.

Prominent figures within the crypto community have expressed criticism regarding the recent crypto tax reporting rules introduced by U.S. President Joe Biden.

On August 25, the Internal Revenue Service (IRS) proposed new regulations to address tax evasion in the crypto space.

The rules require brokers to adhere to specific guidelines when selling and trading digital assets,

with the aim of enhancing tax compliance and simplifying the filing process.

The U.S. Department of the Treasury stated that these proposed rules would align digital asset reporting with reporting requirements for other types of assets.

However, many individuals within the crypto community believe that these strict regulations will have a negative impact,

potentially driving the crypto industry further away from the United States.

Ryan Selkis, CEO of Messari, was among those who expressed dissatisfaction with the news.

He stated that if Biden is reelected, the crypto industry will struggle to thrive within the country.

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In addition to the criticisms expressed by prominent figures in the crypto community, Chris Perkins,

president of crypto venture firm CoinFund, shares the sentiment that the United States is falling behind other countries in terms of crypto innovation.

He argues that instead of implementing strict crackdowns, what is required are clear and comprehensive rules that encourage safe innovation within the crypto industry.

Perkins emphasizes the importance of creating an environment that fosters innovation and attracts crypto-related businesses to the United States.

He suggests that overly restrictive regulations could hinder the country’s ability to compete globally and may result in missed opportunities for growth and technological advancement.

Joe Biden – Concerns Raised Over Merging Digital Asset Reporting and Proposed Crypto Mining Taxes in the US

Kristin Smith, CEO of the Blockchain Association, raised concerns on August 25 regarding the merging of digital asset reporting with traditional assets.

She emphasized that the crypto ecosystem differs significantly from traditional assets and urged for tailored rules that do not inadvertently include ecosystem participants who lack a viable path to compliance.

In a related development, President Joe Biden proposed imposing taxes on crypto mining as a means to reduce mining operations.

A budget proposal dated March 9 outlined an “excise tax equal to 30 percent of the costs of electricity used in digital asset mining.”

The U.S. crypto industry has consistently expressed apprehension over regulatory decisions that impact innovation within the country.

On August 13, Michael Sonnenshein, CEO of Grayscale Investments,

cautioned that the Securities and Exchange Commission’s reliance on enforcement actions would drive crypto firms away from the United States.

Sonnenshein argued that if every crypto-related issue had to be resolved in court,

it would stifle the innovation taking place in the country.

Similarly, Ripple CEO Brad Garlinghouse recently highlighted the crypto industry’s shift away from the United States due to the slower pace of crypto regulation

compared to countries like Australia, the United Kingdom, and Singapore.

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