IRS Seeks Expanded Oversight of Crypto Transactions, Drawing Industry Concerns
-
The IRS is proposing to expand the definition of "brokers" to include crypto exchanges, wallet providers, and other service providers. This would require them to collect personal user data and report transactions to the IRS starting in 2025.
-
The proposal would significantly expand IRS oversight of crypto transactions, reducing anonymity and flexibility for users. It would also create compliance burdens for service providers.
-
The crypto industry has expressed concerns about the proposal, saying it could dampen innovation and investment, and that it goes beyond congressional intent.
-
The proposal has major implications for investors, developers, and the future regulatory landscape of crypto. Navigating this complex issue requires balancing oversight with supporting innovation.
-
As regulations develop, the crypto industry is increasingly engaging in lobbying and political donations to try to shape policy in its favor. This reflects crypto's growing commitment to being part of the political process.