Blockchain Association Criticizes New Proposed Crypto Regulations
The Blockchain Association, a pro-crypto lobbying group, is concerned that the new proposed crypto regulations from the U.S. Department of the Treasury will negatively impact the domestic decentralized finance (DeFi) sector.
In August, the Treasury Department and the Internal Revenue Service (IRS) introduced a new proposal outlining new reporting requirements for “crypto brokers.” The term “crypto broker” refers to trading platforms, digital asset payment processors, certain digital asset-hosted wallet providers, and individuals who regularly offer to redeem crypto assets they created or issued.
The proposed regulations would mandate crypto brokers to report new information to tax authorities regarding their users’ crypto assets sales and transfers.
The Blockchain Association has filed a comment criticizing the Treasury’s proposed new rules. Marisa Tashman Coppel, the lobbying group’s senior counsel, argues that the proposal goes beyond the regulator’s statutory authority.
Coppel asserts that the proposal would force US-based decentralized projects abroad or out of existence and require centralization where none exists. She believes that Congress intended for the definition of a ‘broker’ to be limited to centralized entities who can collect such information.
Hot Take
The Blockchain Association is pushing back against proposed crypto regulations from the U.S. Department of the Treasury, arguing that they will harm US-based decentralized finance (DeFi) projects and drive them out of existence due to excessive reporting requirements. The lobbying group maintains that these rules exceed statutory authority and will force decentralization out of existence. This stance underscores ongoing tensions between regulators and proponents of decentralized technologies.
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