Several prominent crypto commentators have criticized the new crypto tax reporting rules recently put forth by United States President Joe Biden.
On Aug. 25, to catch crypto users avoiding taxes, the Internal Revenue Service (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.
The U.S. Department of the Treasury indicated that the proposed rules would make digital asset reporting similar to reporting on other assets.
However, many in the crypto community believe the stringent rules will push the crypto industry further away from the United States.
Messari CEO Ryan Selkis was among those who responded unfavorably to the news, saying that if Biden secures reelection, 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 view that other countries have surged ahead of the U.S., and these rules will inevitably result in reduced innovation flowing into the country.
Rather than resorting to harsh crackdowns, he believes simple and detailed rules allowing safe innovation across the crypto industry are needed.
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
Meanwhile, others remain skeptical that neither the Democrats nor the Republicans would adequately champion crypto interests in the United States.
“I’m not confident that either party would be good for crypto. Though it definitely feels worse now than last presidency,” one…