– The IRS proposed new crypto tax reporting rules in August, with the potential for implementation in January 2026.
– Coinbase’s chief legal officer, Paul Singh Grewal, called on the crypto community to oppose the proposed regulations, citing concerns about surveillance and the potential harm to the industry.
– The proposed regulations would require crypto brokers to use a new form to report transactions and simplify tax filing.
– The U.S. Treasury Department claims the new form would streamline the tax filing process and bring digital assets in line with traditional financial reporting.
– Grewal argues that the proposed rules would set a dangerous precedent for surveillance and burden Web3 startups with costly requirements.
– Many U.S. lawmakers have urged the IRS to implement crypto tax reporting requirements before 2026.
