The subtle war against cryptocurrency is still brewing in the United States. The latest move is a call from some lawmakers on the Internal Revenue Services and the Treasury to hasten the closure of tax gaps exploited by crypto tax evaders.
US Lawmakers Demand Implementation of New Tax Regulations
Democratic Senators Elizabeth Warren, Richard Blumenthal, Bernie Sanders, and Bob Casey recently signed a letter warning the executives of the agencies to implement new tax regulations quickly.
According to the senators, the country has lost about $50 billion through the crypto tax gap. They claimed that the IRS and Treasury could miss out on almost $1.5 billion in tax revenue for the 2024 financial year on possible delay in updating the tax policy.
The letter cited: “Given the chance, tax evaders and the crypto intermediaries willing to aid them will continue to game the system, exploit loopholes, and siphon off billions of dollars a year from the U.S. government. You must not give them that chance.”
The lawmakers had passed new tax laws stated in the Senate’s $1.2 trillion infrastructure bill in August 2021. The laws increased the tax reporting requirements for crypto-related firms.
However, the IRS and Treasury are yet to release the bill after being signed into law, and the White House conclusion of its review in May this year.
Senator Warren and the others stated that it is almost two years after the law’s enactment. With just six months left to the implementation, they lamented that the Treasury hadn’t made any publication on the proposed rules.
In line with the slated time frame, the IRS and Treasury have till December 31, 2023, to publish and implement the rules. However, the senators are pressing for sooner action from the agencies.
Anti-Crypto War Among US Lawmakers
Some US lawmakers have maintained a negative attitude toward crypto assets and regulations. Elizabeth has been a key opposition to crypto by maintaining a loud critic-stance about the industry in the US.
Senator Warren heightened her outspoken criticism by forming an anti-crypto army as an anchor in her Senate re-election campaign.
I’m in this fight to put our government on the side of working families. Join our re-election campaign today: https://t.co/KuZwvrwkqT pic.twitter.com/fCUcqE9PZM
— Elizabeth Warren (@ewarren) March 29, 2023
Warrant wrote: “I’m in this fight to put our government on the side of working families.”
On the contrary, Sanders has maintained a quiet appearance on public matters related to crypto, unlike most Democratic counterparts. But he has co-signed several letters to limit crypto under Warren’s guide.
The attack from Warren and cohorts against crypto assets may seem quite to be on a downward path regarding the position of other lawmakers.
According to a survey conducted by Grayscale Investments, about 59% of Democrats and 51% of Republicans supported crypto as the future of finance.
