After the U.S. Treasury Department released a proposal to tax cryptocurrency gains, the X (formerly known as Twitter) platform was quickly flooded with opposition to the proposal.
In particular, tax reporting requires the reporting of decentralized encrypted business information, which the industry considers impossible to comply with.
Miller Whitehouse-Levine, chief executive of the decentralized finance (DeFi) lobby group, said on the social media platform that the proposal was written too broadly, with provisions that allow it to capture various entities that he uses in self-custodial or non-custodial wallets. as an example.
Kristin Smith, CEO of the Blockchain Association, said in a statement: “The cryptocurrency ecosystem is very different from that of traditional assets, so the rules must be adjusted accordingly, rather than capturing ecosystem participants who do not have a path to compliance. .”
It is reported that objections must be clearly expressed to the Treasury Department and the Internal Revenue Service before October 30, and public hearings on the proposal will be held on November 7 and 8.