Unchained Could the Bank Secrecy Act Harm Crypto? Coin Center Thinks So - Ep. 571
9 snips
Nov 17, 2023 
Peter Van Valkenburgh, Director of Research at Coin Center and an expert in crypto regulation, dives into the implications of the IRS's proposed broker rule on crypto tax reporting. He argues this rule could undermine user privacy and the industry's vitality. Peter questions the constitutionality of the Bank Secrecy Act, spotlighting its potential to stifle creativity among developers. He also shares alternatives for fairer regulations, advocating Coin Center's efforts to realign the Act with crypto realities.
AI Snips
Chapters
Books
Transcript
Episode notes
New Crypto Broker Rule
- The IRS proposed a new broker rule for crypto tax reporting.
- This rule suggests that software developers must report user data, raising constitutional concerns.
Coin Center's Stance
- Coin Center advocates for clearer standards, not less regulation.
- They believe the existing broker definition, focused on trust relationships, should apply to crypto.
DeFi Tax Enforcement
- Non-compliant taxpayers often cash out through centralized exchanges, making tracking possible.
- Increased IRS funding for investigations could address DeFi tax evasion.
