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US Treasury Department Formulates New Set of Rules for Crypto Brokers; Community Reacts

The US Treasury and IRS working on new crypto broker rules to enhance tax compliance and mitigate risks. Public input sought until Oct 30, 2023.

ShahZaib Ahmed



The US Treasury Department and IRS (Internal Revenue Service) are collaborating to carve out a new set of rules and regulations for crypto brokers. For now, both departments have been focusing on formulating the rules focused on the reporting of the transactions of the digital assets.

Biden-Harris administration is devoted to filling the gaps regarding tax compliance and coping with the risk factors.  Moreover, it is going to look after the increasing tax-associated risks for brokers of digital assets. Upon which people were asked to comment on the proposed draft of rules and regulations till the 30th of October 2023.

Overview of the Draft

The foremost rule of the draft was to make it compulsory for the brokers to report the details of sell and purchase of digital assets. This would put them in a standard line fulfilling the financial regulations and instrumentation like bonds and stocks. US Department of Treasury assured that following the carved rules would simplify the tax calculation and emphasized on issuing the Form 099-DA.

Also Read: Atomic Wallet Goes Through Lawsuit Due to Losses of $100M in a Crypto Hack

IRS and US Treasury Department also disclosed the date for the implementation of the new rules. If these rules are accepted by the majority, proper reporting of digital assets will be initiated from 2026 to cover the reporting of the transactions carried out in 2025. It was disclosed that this framework is able to yield around $28 billion in the next 10 years.

Community’s Response

US Treasury Department and IRS has decided to discuss the draft on 7th and 8th of November 2023. Both departments have decided to consider the community’s response to be affected from the recently proposed agenda. Several tax payers and other community members have recorded their response in this regards and shared vita tweets which are given below. 

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