IRS Releases Proposed Regulations for Crypto Tax Reporting

The United States IRS Proposes New Regulations for Crypto Tax Reporting

The United States Internal Revenue Service (IRS) has released proposed regulations on the sale and exchange of digital assets by brokers. Here are the key points:

– Brokers would be required to use a new form to simplify tax filings and cut down on tax cheating.
– The regulations aim to bring digital asset reporting in line with reporting on other types of assets.
– The proposed rules would go into effect in 2026 for sales and exchanges carried out in 2025.
– Written comments on the proposal are being accepted until Oct. 30, with a public hearing to follow.

Prominent Crypto Commentators Criticize New Crypto Tax Rules

Several prominent crypto commentators have criticized the new crypto tax reporting rules. Here are their opinions:

– Kristin Smith, the CEO of the Blockchain Association, highlighted the difference between the crypto ecosystem and traditional finance.
– DeFi Education Fund CEO Miller Whitehouse-Levine called the rules “confusing, self-refuting, and misguided.”
– Messari CEO Ryan Selkis stated that the crypto industry in the country has no future if President Joe Biden is reelected.
– Representative Patrick McHenry called the proposal “another front in the Biden Administration’s ongoing attack on the digital asset ecosystem.”

Gemini Files Brief to Dismiss SEC Lawsuit

Cryptocurrency exchange Gemini is seeking to dismiss the lawsuit it is facing from the U.S. Securities and Exchange Commission (SEC). Here’s the breakdown:

– Gemini argues that the SEC has failed to make a clear claim in the lawsuit.
– The company believes the court should avoid addressing the “convoluted analyses” presented by the SEC and focus on straightforward questions.
– The SEC claims that Gemini Earn breached securities regulations by offering unregistered securities.

No Copyright for AI-Generated Art, U.S. Court Rules

A U.S. district judge has ruled that artworks created solely by artificial intelligence (AI) are not eligible for copyright protection. Here’s what you need to know:

– The ruling comes amid concerns about AI replacing human artists and ongoing discussions about AI firms using copyrighted content for training.
– Several lawsuits in California have been filed by artists claiming copyright violations, potentially impacting AI companies.

U.K. Considers Prohibiting Crypto Investment Cold Calls

The United Kingdom is considering a ban on finance-related cold calls and is seeking evidence on the impact and costs of implementing the ban. Here are the details:

– The ban aims to target scammers while minimizing the impact on businesses that rely on cold calling prospects.
– His Majesty’s Treasury has issued a consultation paper with 19 questions for stakeholders to provide their insights.
– The consultation period will close on Sept. 27, 2023.

Hot Take

The proposed regulations by the IRS and the criticism from prominent crypto commentators highlight the ongoing debate and challenges surrounding the regulation of cryptocurrencies. While the regulations aim to simplify tax filings and prevent tax cheating, critics argue that they are misguided and could hinder the growth of the crypto industry. The rulings on AI-generated art and the potential ban on crypto investment cold calls also raise important questions about the intersection of technology and regulation. The outcomes of these discussions and decisions will shape the future of the crypto industry and its relationship with governments and traditional financial systems.