Members of the United States Senate expressed in a letter written yesterday their desire for the planned tax regulations aimed at preventing tax evasion in the cryptocurrency market and increasing government revenue to be implemented as soon as possible.
Coinbase, in a 14-page letter sent to the Internal Revenue Service (IRS), the American tax authority, today, expressed “serious concerns” about the tax regulations proposed by the IRS, which could negatively impact the daily lives of Americans.
These Regulations Will Bring Unprecedented Scrutiny
However, it is well-known that Coinbase has long advocated for a tax system that treats digital assets in the same way as traditional financial assets. Yet, Coinbase believes that the regulations proposed by the IRS are overly broad and unchecked when it comes to tracking Americans’ digital asset transactions. According to Coinbase, the proposed regulations will bring unprecedented scrutiny into the daily lives of Americans.
Coinbase specifically mentions that the proposed reporting requirements are “incomprehensible and overly burdensome.” They believe that these requirements could also make the process of understanding and complying with tax laws regarding cryptocurrency transactions more complex for Americans.
While Senate members have expressed their desire for these regulations to take effect as soon as possible, it can be noted that the definite implementation date is set for 2026.