US Lawmakers Write to Treasury Department Seeking Amendment On Proposed Crypto Tax Rules

cryptonews.com:

A group of United States lawmakers have led an effort for a change in the proposed cryptocurrency tax regime announced by the Treasury Department.

The group addressed a letter to the Department on Nov 15 urging the body to change its approach to regulating the sector specifically reversing some broad definitions of terms.

Patrick Henry, the Chairman of the House Financial Services Committee, and Ritchie Torres led the move calling the proposed tax guidelines unworkable with the present market situation.

The Treasury Department’s Tax reporting rule was proposed in August and received severe backlash from the digital asset industry after a public consultation was announced to span to November. It has been disclosed that more than 124,000 comments were received and it is now open for possible revision with a final version set for release in the coming months.

“As we have communicated previously, the tax reporting requirements on digital asset market participants in the Infrastructure Investment and Jobs Act (the “IIJA”) are unworkable as written and fail to consider factors that are inherent to the digital asset ecosystem. The proposed regulations do not remedy our previously stated concerns.”

The lawmakers simply described it as “unworkable in its current form,” as it is harmful and would inhibit the investment drive around the industry.

The definition of “broker” appears to be broad, seeking to include several parties who do not perform the traditional role of brokers even in centralized finance.

The definition of a broker as a person who facilitates digital asset sales includes decentralized finance exchanges that merely provide information a user may trade digital assets on their platform.

These guidelines put massive pressure