Globally, the priority of cryptocurrency regulations is focusing on taxation issues. Before taking office, Trump witnessed the U.S. Internal Revenue Service finalize a controversial rule. SEC Chair Gensler faced backlash for appointing senior officials opposed to cryptocurrency to secure their positions, enhancing their influence. This article examines the implications of these new rules.
DeFi Cryptocurrency Taxation
The U.S. Internal Revenue Service classifies DeFi platforms alongside traditional brokers. This classification imposes certain responsibilities on DeFi protocols, which will now be required to store information about user transactions and report it similarly to market brokers. Users will receive Form 1099, and their profits will be subject to taxation.
Aviva Aron-Dine, Deputy Assistant Secretary for Tax Policy, stated, “These regulations will ensure that all taxpayers operate under the same rules and have access to the information needed to report their taxes accurately. Aligning cryptocurrency tax reporting requirements with those for other a...
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