Coinbase crypto exchange chief legal officer Paul Grewal called on the crypto community to join the movement against the United States Treasury’s proposed tax reporting regulations on cryptocurrencies. Grewal urged the community to oppose the proposed regulations, as they could set a dangerous precedent for surveillance.
Grewal took to X (formerly Twitter) to address the concerns associated with the proposed crypto tax reporting rules and claimed they go beyond the congressional mandate to establish tax reporting rules. He added that if the proposed regulations become a law, it would put “digital assets at a disadvantage and threaten to harm a nascent industry when it’s just getting started.“
Everyone who cares about fairness and supports American innovation should chime in on Treasury’s proposed regulations for tax reporting of digital assets. You can join @StandwithCrypto’s opposition to the rulemaking here. 1/4 https://t.co/4eALt1Frxo
The U.S. Internal Revenue Service (IRS) released a draft of proposed regulations for crypto tax reporting on Aug. 25. Under the proposed rules, crypto brokers would be required to use a new form to report to simplify tax filing and cut down on tax cheating. The proposed regulations include centralized and decentralized exchanges, crypto payment processors, certain online wallets and crypto brokers.
The Treasury Department claimed that the new form would simplify the tax filing process as it would help taxpayers determine if they owe taxes rather than having to make complicated calculations or pay digital asset tax preparation services to file their tax returns. If approved, the new tax regime will come into effect from 2026 and the brokers will be required to start reporting 2025 transactions in January 2026 via Form 1099-DA. However, many U.S. lawmakers urged the IRS to implement crypto tax reporting requirements before 2026.
The Treasury Department claimed the crypto tax reporting rules would put digital assets in line with traditional financial reporting, but Coinbase’s legal officer insists this is not the case. Grewal, in his X post, noted that the proposed rules would set a “dangerous precedent for surveillance of the everyday financial activities of consumers by requiring nearly every digital asset transaction – even the purchase of a cup of coffee – to be reported.”
Coinbase chief legal officer noted that the proposed regulations would require the collection of a significant amount of user data that bears no “legitimate public purpose.” Grewal said the data collection would overburden Web3 startups with costly requirements while offering the “IRS with more data than they can ingest and analyze.”
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Dr Lade Smith, president of the RCP, said: “The RCP has reached the conclusion that we are not confident in the Terminally Ill Adults Bill in its current form, and we therefore cannot support the Bill as it stands.”
The move is significant because, under the bill’s current stipulations, a panel including a psychiatrist would oversee assisted dying cases.
The RCP outlined a number of issues it had with the current bill, including: the bill not making provision for unmet needs, whether assisted suicide is classed as a treatment or not, what the psychiatrists’ specific role on the panel would be, and the increased demand the bill puts on psychiatrists.
If the college support remains withdrawn, and the bill passes, it isn’t clear what effects it may have.
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Kim Leadbeater, the MP behind the bill, has confirmed it will include a clause that means anyone who does not want to be involved in the process will not have to do so.
Supporters of the bill argue it would ease the suffering of dying people, while opponents argue it would fail to safeguard some of the most vulnerable people in society.
Image: MP Kim Leadbeater talking to Sky News
Questions over the bill
The more prominent role of a psychiatrist in the bill came about after a previous amendment.
Initially, the bill said that after two independent doctors approved an assisted dying case, it would then need to be further approved by a High Court judge.
Instead, Ms Leadbeater proposed a voluntary assisted dying commissioner that included an expert panel with a psychiatrist.
She said this was a “strength, not a weakness,” but opponents of the bill disagreed, saying removing the High Court judge “fundamentally weakens protections for the vulnerable”.
Friday’s debate was already delayed from 25 April, to give MPs more time to consider amendments.
If the bill passes on Friday, it will move to the House of Lords, where it will undergo similar legislative stages, and if it passes that too, it won’t come into effect until at least 2029, after its implementation was delayed.
AI civil servants and sending human workers out of London are at the heart of the government’s plans to cut costs and reduce the size of the state bureaucracy.
Shrinking the civil service has been a target of both the current Labour and recent Conservative governments – especially following the growth in the organisation during the pandemic.
From a low in 2016 of 384,000 full time workers, in 2024 there were 513,000 civil servants.
The Department for Science, Innovation and Technology is claiming a new swathe of tools to help sift information submitted to public consultations could save “75,000 days of manual analysis every year” – roughly the work of 333 civil servants.
However, the time saved is expected to free up existing civil servants to do other work.
The suite of AI tools are known as “Humphrey”, after Humphrey Appleby, the fictional civil servant in the TV comedy Yes, Prime Minister.
The government has previously said the introduction of AI would help reduce the civil service headcount – with hopes it could save as much as £45bn.
Speaking today, Technology Secretary Peter Kyle appeared to take aim at expensive outsourcing contracts, saying: “No one should be wasting time on something AI can do quicker and better, let alone wasting millions of taxpayer pounds on outsourcing such work to contractors.”
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March: 10,000 officials could go
Move outside of London
Other money-saving plans announced today include moving 12,000 civil servants out of London and into regional hubs – with the government hoping it can save almost £100m by 2032 by not having to pay for expensive leases of prime office space in the capital.
Currently, 95,000 full time civil servants work in London.
Tens of millions of pounds a year are expected to be saved by the closure of 102 Petty France, which overlooks St James’s Park, and 39 Victoria Street, which is near the previous location of New Scotland Yard.
In total, 11 London offices are slated for closure, with workers being relocated to the likes of Aberdeen, Belfast, Darlington, Bristol, Manchester and Cardiff.
The reforms of the civil service are being led by Chancellor of the Duchy of Lancaster Pat McFadden – one of Sir Keir Starmer’s most influential ministers.
Mr McFadden said: “To deliver our plan for change, we are taking more decision-making out of Whitehall and moving it closer to communities all across the UK.
“By relocating thousands of civil service roles we will not only save taxpayers money, we will make this government one that better reflects the country it serves. We will also be making sure that government jobs support economic growth throughout the country.
“As we radically reform the state, we are going to make it much easier for talented people everywhere to join the civil service and help us rebuild Britain.”
The government says it wants senior civil servants out of the capital too – with the aim being that half of UK-based senior officials work in regional offices by the end of the decade.
The government claims the relocations and growth of regional hubs could add as much as £729m to local economies by 2030.
Image: Pat McFadden is leading the changes to the Civil Service. Pic: PA
Union welcome – cautiously
Unions appear to cautiously welcome the changes being proposed.
All of Prospect, the PCS and the FDA say it is positive to see better opportunities outside of the capital.
However, they have asked for clarity around whether roles may be lost and what will be offered to people transferring.
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Fran Heathcote, the general secretary of the PCS union, said: “If these government proposals are to be successful however, it’s important they do the right thing by workers currently based in London.
“That must include guarantees of no compulsory redundancies, no compulsory relocations and access to more flexible working arrangements to enable them to continue their careers should they wish to do so.”
Two US senators are calling on Treasury Secretary Scott Bessent to “exercise [the department’s] authority” and change a provision affecting taxes on corporate holdings of digital assets.
In a May 12 letter, Senators Cynthia Lummis and Bernie Moreno suggested Bessent had the authority to change the definition of “adjusted financial statement income” under existing US law in a way that could reduce what digital asset companies pay in taxes. The proposed adjustment was suggested as a way to modify a provision of the Inflation Reduction Act, signed into law in 2022.
“Our edge in digital finance is at risk if US companies are taxed more than foreign competitors,” said Lummis in a May 13 X post.
May 12 letter to Treasury Secretary Scott Bessent. Source: Cynthia Lummis
According to the two senators, the proposed modification would provide “relief to corporations that invest in digital assets.” Lummis has been one of the most outspoken digital asset advocates in Congress, while Moreno took office in January after crypto-backed political action committees spent roughly $40 million to support his 2024 Senate race.
The Inflation Reduction Act, which went into effect in 2023, imposes a 15% minimum tax on companies that report more than $1 billion in profits for three consecutive years. The measure would seemingly include unrealized crypto gains and losses, leading to Lummis’ and Moreno’s calls for the Treasury Department to “act swiftly.”
Senate awaiting second vote on stablecoin bill
The call from the two senators came as lawmakers in the Senate are expected to consider another vote on the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act — legislation to regulate payment stablecoins in the US. A motion for consideration failed to move forward in the Senate on May 8 due to Democratic lawmakers pushing back on Donald Trump’s ties to the crypto industry.
Lummis, one of the bill’s co-sponsors, suggested that she would continue to support digital asset regulation. The Senate could take up another vote in a matter of days.