IRS Proposal to Classify Certain Crypto Entities as Brokers for Tax Reporting Receives Over 117,000 Comments

The IRS has received over 117,000 comments regarding the proposal to classify certain crypto entities as brokers for tax reporting purposes, with concerns raised about privacy implications, reporting requirements on stablecoin transactions, and the burden on brokers. The amount of information that would need to be collected and reported is a central concern. Some commenters suggested exempting small cryptocurrency transactions from tax reporting requirements, but this was not addressed in the proposed rule. Meanwhile, the UK has announced new stablecoin rules and a hearing will take place in the Genesis bankruptcy case. The Senate Banking Committee will hold a classified briefing on illicit finance.