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Biden Administration’s New Crypto Rule Forces Full IRS Oversight, Sparks Industry Backlash
The Biden administration has finalized a sweeping new regulation requiring platforms to track all cryptocurrency transactions and report them to the Internal Revenue Service (IRS), sparking outrage from the industry. The move marks a significant shift in the US government’s stance on crypto regulation.
As of December 30, 2024, digital asset transactions must be reported using Form 1099-DA. This mandate extends beyond traditional brokerages to include decentralized exchanges, trading front-end platforms, and custodial wallet providers facilitating digital assets, including non-fungible tokens (NFTs) and stablecoins.
Critics of the rule argue that it oversteps legal boundaries and may face strong opposition from Congress and the courts. The regulation’s scope is broad enough to potentially encompass even ISPs and web browsers, a development that has raised concerns about the potential impact on user privacy.
Industry insiders warn that this new requirement will stifle innovation, impose significant compliance costs on platforms, and drive businesses overseas in an attempt to avoid these stringent reporting requirements. Some have already begun to evaluate their compliance frameworks in anticipation of legal challenges ahead.
Proponents of the regulation, however, believe it is necessary to close loopholes in crypto tax reporting and enhance transparency within the industry. They argue that this move will level the playing field between digital and traditional financial markets.
The cryptocurrency community is bracing for a potential regulatory battle as companies prepare to challenge the legality of the rule. As tensions rise, investors are advised to monitor updates closely and consult legal experts to ensure their investments and operations remain compliant with evolving regulations.
In the coming weeks and months, we can expect to see significant legal battles unfold as the industry seeks to protect its interests. With this new requirement in place, it is crucial for all stakeholders to stay informed about regulatory shifts and adapt their strategies accordingly to avoid potential financial penalties or even business disruptions.
Source: www.crypto-news.net
