Messari CEO: Proposed New Regulations on U.S. Cryptocurrency Tax Reports Are Bad for Industry Development

Odaily Planet Daily News In order to prevent cryptocurrency users from evading taxes, the U.S. government proposes that brokers comply with new rules for selling and trading digital assets, and will use a new form to simplify the tax filing process. Many in the crypto community believe that strict rules will keep the crypto industry further away from the United States. Messari CEO Ryan Selkis believes that if Biden is re-elected as President of the United States, the encryption industry will not flourish in the United States. Chris Perkins, president of CoinFund, said that other countries are already ahead of the United States, and these rules will inevitably lead to fewer innovative projects entering the US market. He believes that instead of taking severe crackdowns, it is better to formulate simple and detailed rules to support innovation in the encryption industry. (Cointelegraph) Earlier news, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) recently released a nearly 300-page proposed rule that clearly defines "brokers" in the encryption industry. Under the new rules, CEXs, payment processors, some custodial wallet providers, some DEXs, and individuals or entities that cash out issued crypto tokens will be required to fulfill tax reporting obligations. The new rules also introduce a new tax form to be used by newly appointed brokers. The proposed rule is still in the proposal stage, and the administration will gather public comments by Oct. 30 and hold a series of public hearings on Nov. 7 and 8.