Crypto community reacts to Biden’s proposed crypto tax reporting rules

Several prominent crypto commentators have criticized the new crypto tax reporting rules recently put forth by United States president Joe Biden. 

On Aug. 25, in an effort to catch crypto users avoiding taxes, the Internal Revenue Services (IRS) proposed brokers follow new rules for selling and trading digital assets. Brokers would use a new form to make tax filing easier and prevent cheating on taxes.

Many in the crypto community believe the stringent rules will push the crypto industry even further away from the U.S.

Messari CEO, Ryan Selkis was among those who responded unfavorably to the news, believing that if Biden secures re-election, the crypto industry will not flourish in the country. 

There’s no future for crypto in the US if Biden is reelected. I’m sorry.

Move abroad, draft Newsom and hope for the best, or vote GOP where at least we know the top three candidates are less terrible on this issue.

Crypto has always been political. ‍

Have a nice weekend.

— Ryan Selkis (@twobitidiot) August 25, 2023

Likewise, Chris Perkins, president of crypto venture firm CoinFund holds the viewpoint that other countries have surged ahead of the U.S., and these rules will inevitably result in reduced innovation flowing into the country.

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

While others remain skeptical that neither the Democrats or the Republicans would adequately champion crypto interests in the U.S.

“I’m not confident that either party would be good for crypto. Though it definitely feels worse now than last presidency,” one user stated, as another pointed towards lack of privacy as his main concern:

“US devotion to income tax means they can NEVER accept private transactions on public ledgers without tax and sanction surveillance.”

Related: US crypto’s future could fall on these 4 digital asset bills

This follows Biden’s suggestion to impose taxes on crypto mining in order to decrease mining operations. 

In a budget proposal dated March 9, it was outlined that there would be an “excise tax equal to 30 percent of the costs of electricity used in digital asset mining.”

The crypto industry in the U.S. has repeatedly voiced concerns about regulatory choices affecting innovation within the nation.  

On Aug. 13, Grayscale Investments CEO Michael Sonnenshein warned that the Securities and Exchange Commission (SEC) constantly resorting to enforcement action will drive crypto firms out of the country.

“If every crypto issue needs to go to a court of law, then as a country, we are squashing the innovation taking place here,” Sonnenshein stated.

Magazine: Recursive inscriptions: Bitcoin ‘supercomputer’ and BTC DeFi coming soon