Congressman criticises new cryptocurrency tax rules in the United States

The U.S. Department of the Treasury, together with the IRS unveiled new rules for cryptocurrency taxation. Congressman Patrick McHenry urged the agencies to adopt clearer regulatory requirements.

“The administration of President Joe Biden must stop its efforts to destroy the digital asset ecosystem in the United States and work with Congress to ensure clear regulatory rules for this industry,” the politician said.

In his view, any regulatory requirement should be “narrow, targeted and clear”.

The new rules require cryptocurrency exchanges to report client transaction information to the IRS, as brokers do on the stock market. The rules also apply to DEX, which do not collect personal data of users.

“This is part of the Treasury’s broader efforts to close the tax gap, mitigate tax evasion risks associated with digital assets, and provide a common framework of rules,” regulators said in a statement.

Comments on the document are accepted until October 30. Public hearings are scheduled for November 7-8.

Crypto brokers will be required to report starting in 2026. Regulators expect the new provisions to raise $28 billion over ten years.

Messari founder and CEO Ryan Selkis said the crypto industry has no future in the United States if Biden is reelected to a second term.

“I’m sorry. Move abroad, draft California Governor Gavin Newsom to run for president, and hope for the best, or vote for the Republican Party, where, as we know, at least three top candidates are less awful on this issue. The crypto industry has always been political,” he wrote.

In March, the WSJ reported on plans for Biden to raise taxes on the digital asset industry by $24 billion. In May, the U.S. president drew attention to “tax loopholes for wealthy crypto investors”.

Earlier, the Treasury pushed for an excise tax for mining companies on 30% of the electricity they consume. The tax is planned to be phased in over the next three years.

In August, Coin Center urged lawmakers to consider waiving IRS reporting requirements for third parties on digital assets and to revise the broker definition to exclude miners and node operators.