{"id":84176,"date":"2023-11-13T22:10:24","date_gmt":"2023-11-14T03:10:24","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/irs-holds-hearing-on-digital-asset-reporting-regulations-following-pushback\/"},"modified":"2023-11-13T22:10:27","modified_gmt":"2023-11-14T03:10:27","slug":"irs-holds-hearing-on-digital-asset-reporting-regulations-following-pushback","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=84176","title":{"rendered":"IRS Holds Hearing on Digital Asset Reporting Regulations Following Pushback"},"content":{"rendered":"
\n

Following massive pushback from the crypto industry, the Internal Revenue Service (IRS) held a public hearing on Monday morning, chiefly discussing their recently proposed digital asset broker reporting regulations.<\/p>\n

A firestorm of comments<\/h2>\n

<\/span>
Initially filed on August 29th, 2023, the IRS\u2019 proposed regulations have been at the epicenter of controversy, with nearly 125,000 comments listed on the document as of Monday, November 13th.\u00a0<\/p>\n

Proponents believe the regulatory framework would open the door to accurate accounting and taxation of cryptocurrencies. However, critics argue the proposed regulations would negatively impact the cryptocurrency sector as a whole by threatening consumer privacy and ultimately extending government overreach.<\/p>\n

Over-reporting and overreach<\/h2>\n

<\/span>
The proposed regulation has been criticized for its use of the term broker, which includes \u201ca dealer, a barter exchange, and any other person who (for a consideration) regularly acts as a middleman with respect to property or services.\u201d Critics argue that the definition is too vague given the wide variety of entities that could be classified under the same umbrella.<\/p>\n

\u201cThe Proposed Regulations interpret the term \u201cbroker\u201d to include \u201cdigital asset middleman,\u201d a vague and expansive category of market participants that bears little resemblance to the persons historically considered brokers,\u201d a comment reads in part from the DeFi Education Fund.<\/p>\n

\u201cThe IRS is so fixated on retrieving customers\u2019 personally identifiable information (PII) and ensuring taxes are properly reported that is ignoring the costs of over-reporting,\u201d states a comment from American for Tax Reform. \u201cThis goes beyond what is required of traditional brokers.\u201d<\/p>\n

\u201cAn existential threat to the future of crypto\u201d<\/h2>\n

<\/span>
Moreover, players in the crypto space argue that an intermediary is antithetical to the value of DeFi technology, claiming the absence of a third-party go-between is foundational to the peer-to-peer technology.<\/p>\n

\u201cThere is no sound reason for Treasury and the IRS to label an imaginary middleman and force that imaginary middleman to report decentralized finance trades and cost-basis tax information,\u201d claims Michael D. Bodman, founder and president of Open Source Ventures. \u201cThere is no middleman in decentralized finance protocols, hence the innovation and value of the technology.\u201d<\/p>\n

\u201cI stressed my concerns that if approved in its current form, these proposed asset reporting requirements significantly burden growth and innovation in the digital asset sector, and expose consumers to very serious data privacy risks,\u201d tweeted witness and crypto criminal defense attorney, Carlo D\u2019Angelo, of his testimony Monday. \u201cI further stressed that these proposed regulations pose an existential threat to the future of crypto and DeFi in the United States.\u201d<\/p>\n

The 1099-DA form is officially expected to roll out next year and marks the beginning of more robust regulatory oversight of the crypto community. It remains to be seen what, if any, impact the comments will have on the regulatory proposal.<\/p>\n

\n
\n

\n
\n Enter your email for our Free Daily Newsletter <\/em>\n <\/p>\n

A quick 3min read about today’s crypto news!<\/p>\n

<\/span>\n<\/div>\n<\/p><\/div>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Following massive pushback from the crypto industry, the Internal Revenue Service (IRS) held a public hearing on Monday morning, chiefly discussing their recently proposed digital asset broker reporting regulations. A firestorm of comments Initially filed on August 29th, 2023, the IRS\u2019 proposed regulations have been at the epicenter of controversy, with nearly 125,000 comments listed […]<\/p>\n","protected":false},"author":1,"featured_media":84177,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-84176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"\nIRS Holds Hearing on Digital Asset Reporting Regulations Following Pushback | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Following massive pushback from the crypto industry, the Internal Revenue Service (IRS) held a public hearing on Monday morning, chiefly discussing their\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=84176\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IRS Holds Hearing on Digital Asset Reporting Regulations Following Pushback | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Following massive pushback from the crypto industry, the Internal Revenue Service (IRS) held a public hearing on Monday morning, chiefly discussing their\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=84176\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-14T03:10:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-14T03:10:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1699904203-harold-mendoza-6xafy_ae1lm-unsplash-2-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=84176#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=84176\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"IRS Holds Hearing on Digital Asset Reporting Regulations Following Pushback\",\"datePublished\":\"2023-11-14T03:10:24+00:00\",\"dateModified\":\"2023-11-14T03:10:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=84176\"},\"wordCount\":486,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Crypto\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=84176#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=84176\",\"url\":\"https:\/\/ifintechworld.com\/?p=84176\",\"name\":\"IRS Holds Hearing on Digital Asset Reporting Regulations Following Pushback | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-11-14T03:10:24+00:00\",\"dateModified\":\"2023-11-14T03:10:27+00:00\",\"description\":\"Following massive pushback from the crypto industry, the Internal Revenue Service (IRS) held a public hearing on Monday morning, chiefly discussing their\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=84176#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=84176\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=84176#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"IRS Holds Hearing on Digital Asset Reporting Regulations Following Pushback\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"IRS Holds Hearing on Digital Asset Reporting Regulations Following Pushback | iFintechWorld","description":"Following massive pushback from the crypto industry, the Internal Revenue Service (IRS) held a public hearing on Monday morning, chiefly discussing their","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=84176","og_locale":"en_US","og_type":"article","og_title":"IRS Holds Hearing on Digital Asset Reporting Regulations Following Pushback | iFintechWorld","og_description":"Following massive pushback from the crypto industry, the Internal Revenue Service (IRS) held a public hearing on Monday morning, chiefly discussing their","og_url":"https:\/\/ifintechworld.com\/?p=84176","og_site_name":"iFintechWorld","article_published_time":"2023-11-14T03:10:24+00:00","article_modified_time":"2023-11-14T03:10:27+00:00","og_image":[{"width":2560,"height":1707,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1699904203-harold-mendoza-6xafy_ae1lm-unsplash-2-scaled.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=84176#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=84176"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"IRS Holds Hearing on Digital Asset Reporting Regulations Following Pushback","datePublished":"2023-11-14T03:10:24+00:00","dateModified":"2023-11-14T03:10:27+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=84176"},"wordCount":486,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Crypto"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=84176#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=84176","url":"https:\/\/ifintechworld.com\/?p=84176","name":"IRS Holds Hearing on Digital Asset Reporting Regulations Following Pushback | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-11-14T03:10:24+00:00","dateModified":"2023-11-14T03:10:27+00:00","description":"Following massive pushback from the crypto industry, the Internal Revenue Service (IRS) held a public hearing on Monday morning, chiefly discussing their","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=84176#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=84176"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=84176#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"IRS Holds Hearing on Digital Asset Reporting Regulations Following Pushback"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/84176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=84176"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/84176\/revisions"}],"predecessor-version":[{"id":84178,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/84176\/revisions\/84178"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/84177"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=84176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=84176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=84176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}