The IRS has released new guidance aimed at tightening crypto taxes and closing loopholes. However, crypto industry leaders strongly oppose the changes, arguing that they stifle innovation and privacy in the United States compared to other countries. Critics believe the rules should be tailored specifically for crypto use, not just copies of traditional assets. The US Internal Revenue Service (IRS) has just released new tax reporting guidelines. The rules, supported by President Joe Biden, aim to curb tax evasion in the digital asset space. However, the proposal was met with skepticism and outright opposition from major players in the industry. On August 25, the IRS proposed that crypto brokers adopt new forms aimed at simplifying tax payment and curbing tax evasion. The US Treasury Department further clarified that the goal is to align digital asset reporting with traditional asset reporting. American business leaders are worried Messar CEO Ryan Selkis was quick to express his displeasure. Selkis warned that if Biden gets a second term, the US could become an unfriendly environment for the crypto industry. CoinFund president Chris Perkins echoed Selkis’ sentiments. Perkins argued that the United States already lags behind other countries in crypto innovation, and these new rules would only widen the gap. He advocated “simple and detailed rules” that would encourage rather than stifle innovation. The new rules have also sparked a debate about privacy. Critics argue that the US focus on income taxation means that private transactions on public books are subject to intrusive tax oversight and sanctions. Blockchain Association CEO Kristin Smith expressed reservations about combining digital asset reporting with traditional assets. He emphasized that the crypto ecosystem works differently and that some rules need to be “adjusted accordingly”. The US crypto community is divided over Biden’s new tax reporting rules The IRS has released new guidance aimed at tightening crypto taxes and closing loopholes. However, crypto industry leaders strongly oppose the changes, arguing that they stifle innovation and privacy in the United States compared to other countries. Critics believe the rules should be tailored specifically for crypto use, not just copies of traditional assets. The US Internal Revenue Service (IRS) has just released new tax reporting guidelines. The rules, supported by President Joe Biden, aim to curb tax evasion in the digital asset space. However, the proposal was met with skepticism and outright opposition from a mix of key players in the industry. On August 25, the IRS proposed that crypto brokers adopt new forms aimed at simplifying tax payment and curbing tax evasion. The US Treasury Department further clarified that the goal is to align digital asset reporting with traditional asset reporting. American business leaders are worried Messar CEO Ryan Selkis was quick to express his displeasure. Selkis warned that if Biden gets a second term, the US could become an unfriendly environment for the crypto industry. CoinFund president Chris Perkins echoed Selkis’ sentiments. Perkins argued that the United States already lags behind other countries in crypto innovation, and these new rules would only widen the gap. He advocated “simple and detailed rules” that would encourage rather than stifle innovation. The new rules have also sparked a debate about privacy. Critics argue that the US focus on income taxation means that private transactions on public books are subject to intrusive tax oversight and sanctions. Blockchain Association CEO Kristin Smith expressed reservations about combining digital asset reporting with traditional assets. He emphasized that the crypto ecosystem works differently and that some rules need to be “adjusted accordingly”.