Crypto stakeholders are protesting as the US Treasury Department and the Internal Revenue Service (IRS) finalize new reporting rules for decentralized finance (DeFi) brokers.
According to a new press release from the Treasury Department, while the new rules do not add taxes on crypto assets, they require DeFi brokers to report on gross proceeds from the sale of their digital assets, making them follow the same rule as traditional stock brokers .
The rule also means that digital asset owners who enter into DeFi transactions will also receive the same form from their broker.
Aviva Aron-Dine, assistant secretary for tax policy, said in the press release that the new rule will help taxpayers comply with the rules.
“These regulations will ensure that all taxpayers adhere to the same rules and have access to the information they need to accurately file their taxes.
Aligning tax reporting requirements for digital assets with reporting for other assets will make filing easier and cheaper for compliant taxpayers, while also helping close the tax gap.”
In a recent thread on the social media platform crypto-politicians take power.
“The current rulemaking by the IRS and Treasury Department – days before the end of the year – is a disappointing but expected last-ditch effort to send the U.S. crypto industry overseas.
On behalf of the industry, we are prepared to take aggressive action to fight back. We also look forward to working with the new pro-crypto Congress and the Administration to roll back these and other anti-innovation rules.”
Prominent crypto attorney Jake Chervinksy also addressed X, saying the decision is “illegal” and should be reversed.
“IRS has completed the second half of its broker rule, requiring most DeFi front ends to KYC (know your customer) users starting in 2027. This illegal rule is the last gasp of the anti-crypto army on its way out of power. It must be overturned, either by the courts or by the new government.”
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Generated image: Midjourney