The US Treasury Department has proposed new tax rules for crypto exchanges, hosted wallet providers, and payment processors, requiring them to meet tax reporting obligations, while exempting miners and some decentralized finance platforms.
The U.S. Department of the Treasury and the IRS have released proposed regulations on the sale and exchange of digital assets, requiring brokers to report certain transactions and helping taxpayers determine their tax obligations.
The Chairman of the House Financial Services Committee, Patrick McHenry, criticized the Biden Administration's proposed crypto tax regulations, claiming that they aim to "kill" the digital asset industry in the U.S. and urged for clearer rules.
Prominent crypto commentators criticize the new crypto tax reporting rules proposed by President Joe Biden, fearing that they will push the crypto industry further away from the US and stifle innovation.
Court rulings in the United States are beginning to challenge the Securities and Exchange Commission's stance on digital assets, leading to hopes of a resurgence in the crypto industry in the country.
The IRS has issued proposed regulations defining the term "broker" in relation to digital assets, including decentralized finance platforms, and outlining tax reporting requirements for cryptocurrency transactions, which could have implications for DeFi platforms and users.
The US Department of the Treasury and the IRS have proposed regulations that would require digital asset brokers to report gross proceeds and provide information on gains and losses from the sale of crypto assets starting in 2025.
Applying blockchain technology to financial markets could help reduce costs for issuers of financial instruments like bonds, but it also poses risks such as challenging sovereign authority and fueling tax evasion, according to a report by Moody's Investors Service.
The U.S. Financial Accounting Standards Board has voted to change how digital assets are valued, a move that could benefit companies, including Tesla and Bitcoin, that hold cryptocurrency.
Crypto fundraising platform, The Giving Block, has called for the elimination of appraisal requirements on crypto donations, stating that the current requirements are burdensome for donors and offer no value to charities or the U.S. Treasury. The company argues that crypto assets, including stablecoins, have self-evident values and do not need to be appraised like other assets. They have sent a letter to Senators Ron Wyden and Mike Crapo urging them to support the change.
G20 leaders have agreed to implement global tax reforms encompassing digital economy taxation and a global minimum corporate tax rate, with significant progress already made on the first pillar and a Multilateral Convention (MLC) expected to be ready for signature in the second half of 2023. Additionally, the leaders called for the swift implementation of a Crypto-Asset Reporting Framework (CARF) and the regulation of crypto-assets activities and markets.
The leaders of the G20 nations have agreed to provide global tax authorities with more transparency on cryptocurrency transactions, indicating a growing global cooperation on cryptocurrency, even though implementation may take several years.
The Blockchain Association reflects on the past five years of the crypto industry's challenges in Washington D.C. and highlights potential future areas of focus, including anti-money laundering efforts, passing crypto-related legislation, and the possibility of regulatory personnel changes.
Hester Peirce, a commissioner with the SEC, has called for clarity on digital asset regulations and expressed disappointment with the SEC's progress in developing a regulatory framework for cryptocurrencies, highlighting the need for the United States to catch up with countries like Switzerland and Singapore.
