Consensys Urges IRS to Consider Complexity and Industry Impact of Proposed Crypto Regulations
Blockchain company Consensys has called on the IRS to carefully consider its proposed crypto regulations, expressing concerns over the complexity and potential impact on the industry. In a recent blog post, Consensys emphasized the need for precision and care in structuring reporting requirements for digital-asset brokers.
Concerns Over Complex Regulatory Scheme
Consensys highlighted that if the proposed regulations are finalized as is, it would impose a new and complex regulatory scheme on software developers and others in the fast-growing digital-asset industry. This could require significant changes to business practices for companies of all sizes.
Issues with Analysis and Regulatory Burdens
The parent company of MetaMask also pointed out issues with the completeness of the analysis in the notice of proposed rule-making. Consensys stated that regulated parties, especially small businesses, may struggle to comply with the proposed amendments due to unnecessarily high burdens.
Phased-In Approach and Implementation Deadlines
To address these concerns, Consensys suggested a delay in implementation deadlines and a phased-in approach for particularly challenging aspects of the regulations. This would provide more time for companies to adapt and ensure compliance.
New Responsibilities for Brokers
The proposed regulations introduced by the IRS aim to broaden reporting requirements for crypto transactions. If implemented, brokers would have new responsibilities, including submitting information returns and furnishing payee statements for designated crypto dispositions on behalf of their customers.
Closing Thoughts: A Call for Careful Consideration
Consensys’ call for careful consideration from the IRS highlights the need to balance regulatory requirements with the complexities and unique features of the digital-asset industry. It is crucial for regulations to support the continued development of the industry while ensuring compliance and minimizing unnecessary burdens.
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