{"id":176775,"date":"2023-10-19T00:16:16","date_gmt":"2023-10-18T18:46:16","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=176775"},"modified":"2023-10-19T00:16:16","modified_gmt":"2023-10-18T18:46:16","slug":"coinbase-clo-challenges-irs-digital-asset-tax-reporting-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/coinbase-clo-challenges-irs-digital-asset-tax-reporting-crypto-news\/","title":{"rendered":"Coinbase CLO Challenges IRS Digital Asset Tax Reporting – Crypto News"},"content":{"rendered":"

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In a series of tweets today, Coinbase Chief Legal Officer Paul Grewal called on those who care about fairness and support American innovation to oppose the Treasury\u2019s proposed regulations for tax reporting on digital assets.<\/p>\n

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\u201cAt their core, the proposed regs go well beyond the congressional mandate to establish tax reporting rules on par with those for traditional finance, putting digital assets at a disadvantage and threatening to harm a nascent industry when it\u2019s just getting started,\u201d<\/em> Grewal tweeted.<\/p>\n

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Regulatory Overreach Concerns<\/strong><\/h2>\n

Grewal\u2019s concerns revolve around the proposed regulations<\/a>, which he believes exceed the mandate given by Congress to create tax reporting rules equivalent to those of traditional financial systems. He argued that these regulations could potentially hinder the growth of the digital asset industry, which is still in its early stages.<\/p>\n

The propose rules, according to Grewal, threaten to introduce a level of surveillance into the financial activities of ordinary citizens such as \u201cthe purchase of a cup of coffee\u201d<\/em>. Such intrusive reporting requirements could undermine privacy rights and potentially harm the digital asset industry\u2019s development.<\/p>\n

Grewal\u2019s critique extended further, highlighting the burden that these rules could impose on both startups and the IRS itself. <\/em>His concern is that the proposed regulations might overwhelm Web3 startups with compliance costs, stifling innovation and growth in the sector.<\/p>\n

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\u201cCollection of such data has no legitimate public purpose and threatens to overburden Web3 startups with costly requirements and the IRS with more data than they can ingest and analyze,\u201d<\/em> he warned.<\/p>\n<\/blockquote>\n

Crypto Industry Pushes Back<\/strong><\/h2>\n

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Grewal\u2019s public opposition to the IRS\u2019s proposed regulations is part of a broader pushback<\/a> within the cryptocurrency industry against what is seen as overreaching government control. Coinbase and various industry stakeholders have consistently voiced concerns about the impact of these rules on privacy, innovation, and the overall growth of the cryptocurrency sector.<\/p>\n

Just last week, Coinbase sounded the alarm on the IRS\u2019s crypto tax<\/a> proposal, describing it as \u201cincomprehensible.\u201d The exchange contended that the proposed rules would place an undue burden on the industry while raising significant concerns about privacy and surveillance.<\/p>\n

That said, the IRS, however, is looking to tighten its grip on cryptocurrency tax enforcement, especially in response to a growing \u201ctax gap\u201d caused by noncompliance in the digital asset space. Notably, the rules stipulate that reporting is set to initiate in January 2026 for transactions conducted in 2025.<\/p>\n

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Newton Mbogo is a crypto and DeFi specialist. He has a B.A Hons in Law from Kabarak University, where he studied complex economic, legal, and ethical theory relevant to the FinTech landscape. Newton has a particular interest in decentralization and privacy blockchains, as they directly relate to our human rights and flourishing. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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–><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

In a series of tweets today, Coinbase Chief Legal Officer Paul Grewal called on those who care about fairness and support American innovation to oppose the Treasury\u2019s proposed regulations for tax reporting on digital assets. \u201cAt their core, the proposed regs go well beyond the congressional mandate to establish tax reporting rules on par with […]<\/p>\n","protected":false},"author":2,"featured_media":174038,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-176775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/176775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=176775"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/176775\/revisions"}],"predecessor-version":[{"id":176777,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/176775\/revisions\/176777"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/174038"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=176775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=176775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=176775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}