Numerous influential figures in the crypto world worry that these measures might increase the hesitancy of crypto companies to operate within the United States.
Prominent people in the crypto world have criticized the new rules for reporting crypto taxes that were recently introduced by US President Joe Biden.
On August 25th, the IRS (the tax authority) proposed that brokers should follow new rules when selling and trading digital money to make sure people pay the right taxes. They want to make it easier to report taxes and prevent cheating.
The US Department of the Treasury said these new rules are meant to make reporting digital money similar to how other things are reported for taxes.
However, many in the crypto community think these strict rules might push the crypto business away from the US.
Messari CEO Ryan Selkis didn’t like the news either. He said that if Biden gets reelected, the crypto business might not do well in the US.
https://twitter.com/twobitidiot/status/1695173624456532347?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1695173624456532347%7Ctwgr%5Eba40685150766c8f50baf338a1fa2d98fae1ab3c%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fcrypto-community-biden-crypto-tax-reporting-rules
Chris Perkins, who is in charge of a crypto investment company called CoinFund, thinks the same way. He believes that other countries have moved forward more quickly than the US, and these rules will make new ideas come into the country less.
Instead of being really strict, he thinks there should be clear and easy rules that let the crypto business try new things safely.
To clarify, I agree that other jurisdictions have seized the initiative and the U.S. has sadly fallen behind. We need proactive, nuanced policies that encourage and unlock responsible innovation across crypto verticals. Clarity is coming, one way or another. The time to engage…
— Christopher Perkins 🚀NYC (@perkinscr97) August 26, 2023
On the other hand, some people are not sure that either the Democrats or the Republicans would really support crypto in the United States.
“I don’t think either group would help crypto very well. It feels even less good now than the last president,” one person said. Another person mentioned that the new rules make them worried about privacy:
“The US really cares about income tax, so they can NEVER allow private transactions on public records without keeping an eye on taxes and penalties.”
Understanding the Unique Crypto Landscape and Concerns
The crypto world is not like regular investments, so rules need to be different and not include people who can’t follow them, says Smith.
Biden suggested taxing crypto mining to reduce it.
A plan from March 9 said there could be a tax of 30% on the electricity used in mining digital money.
People in the US crypto business worry that rules will slow down new ideas.
Grayscale Investments CEO Michael Sonnenshein said the government’s strict actions will make crypto companies leave the US because of the lack of space for new ideas.
Brad Garlinghouse, CEO of Ripple, also said the US is too slow with its rules. This is why the crypto business is moving more to other countries like Australia, the UK, and Singapore.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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