In this episode of Unchained, Peter Van Valkenburgh, director of research at Coin Center, explains why the IRS’s proposed broker rule for tax reporting in crypto could harm the crypto industry as well as the security and privacy of users. He explains how Coin Center thinks the IRS should accomplish its aims, and why that would even work for collecting taxes on DeFi gains.
Additionally, Peter explains why he believes the Bank Secrecy Act might be unconstitutional and how that could potentially affect developers building in crypto.
- What the IRS’s proposed broker rule entails for crypto tax reporting and why this could have a negative impact on the industry
- What responsibilities brokers in the crypto space now face
- Why the IRS didn’t use Congress’s amended language from the infrastructure bill
- Why Peter argues that the IRS’s new proposed broker rule on crypto is unconstitutional and the principles at stake
- The alternative approaches Peter suggests the IRS could adopt for more effective and fair regulation
- Why Peter has concerns for crypto developers about the potential application of the Bank Secrecy Act
- What actions Coin Center is undertaking to advocate for changes in the Bank Secrecy Act to better align with crypto realities
- Why Coin Center is appealing in its lawsuit against the Treasury Department over the OFAC sanctions on Tornado Cash
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- Peter Van Valkenburgh, director of research at Coin Center
IRS Crypto Regulation
- Coin Center: Electronic Cash, Decentralized Exchange, and the Constitution
- The Blockchain Association’s letter opposing tax regulations proposed by the IRS
- CoinDesk: How the Crypto Industry Responded to the IRS Proposed Broker Rule
- Patriot Act
- California Bankers Assn. v. Shultz
Bank Secrecy Act