news 
Biden Administration’s New Crypto Rule Forces Full IRS Oversight, Sparks Industry Backlash
The United States Treasury and Internal Revenue Service (IRS) have issued a sweeping new regulation requiring brokers facilitating digital asset transactions to report all user activity to the IRS. This unprecedented rule is scheduled for publication in the Federal Register on December 30, 2024, mandating platforms, including decentralized finance (DeFi) services, to track sales of all digital assets, including non-fungible tokens (NFTs) and stablecoins.
Key aspects of this new rule include:
* Reporting gross proceeds from all transactions using Form 1099-DA
* Maintaining records for seven years
* Verifying the identities of users engaging in transactions
The Biden administration has cited the need to align tax reporting for digital assets with existing requirements for traditional securities brokers, aiming to close loopholes in crypto tax reporting and enhance transparency. However, critics argue that this unprecedented overreach will impose significant compliance costs on platforms, stifle innovation, and potentially drive crypto businesses overseas.
Industry experts have expressed concerns about the potential stifling impact of these regulations on the burgeoning cryptocurrency industry. Many are scrambling to evaluate their compliance frameworks to prepare for any changes and anticipate a wave of legal challenges to contest the rule’s legality.
As the industry prepares for a contentious battle ahead, stakeholders are urged to stay informed about how this IRS crypto reporting rule could reshape the digital asset landscape.
Source: www.crypto-news.net
