The US Treasury Department and the IRS just finalized new rules for reporting crypto transactions on decentralized finance (DeFi) platforms, and the crypto world is not happy.
New Rules, Same Taxes
While the new rules don’t introduce any new crypto taxes, they require DeFi brokers to report the total value of cryptocurrency sales. This mirrors the reporting requirements for traditional brokers. This means DeFi users will also receive the same tax reporting forms from their brokers. The Treasury Department claims this will make tax filing easier and fairer for everyone.
Crypto Advocates Fight Back
However, the crypto community is pushing back hard. Kristin Smith, head of the Blockchain Association, called the move a “last-ditch effort” by the Biden administration to stifle the industry before a more crypto-friendly Congress takes office. She vowed to fight the new rules.
Prominent crypto lawyer Jake Chervinsky also slammed the rules as “unlawful” and predicted they’ll be overturned, either by the courts or the incoming administration. He believes this is a final attempt by anti-crypto forces to exert control before losing power.
The crypto community sees these new rules as an attack on the industry and plans to actively fight against their implementation.
