The Blockchain Association, a U.S. crypto advocacy group, rebuffs IRS-proposed tax regulations on digital asset transactions, citing overreach and potential infringements on privacy rights. Explore the concerns and implications for the crypto space.
The Blockchain Association (BA), a prominent U.S.-based crypto advocacy group, has strongly opposed the Internal Revenue Service’s (IRS) proposed tax rules for brokers in the crypto space. In a letter dated Nov. 13, BA criticized the IRS for overstepping its authority, asserting a lack of understanding of digital assets and decentralized technology. The proposed rules, aiming to regulate the sale and exchange of digital assets, face backlash for being impractical, especially for decentralized finance (DeFi) participants. BA CEO Kristin Smith emphasized the potential violation of privacy rights, urging the Treasury Department to reconsider the detrimental impact on U.S. decentralized tech developers.
The controversy surrounding these rules has sparked reactions from lawmakers, industry leaders, and legal experts, with concerns about the rules’ impact on the burgeoning crypto industry.