US Senators urge IRS to accelerate crypto tax rules

The broker rule, introduced in August under President Joe Biden’s Jobs Act seeks to establish clear reporting standards for the crypto industry

article-image

Peter Carney/Shutterstock, modified by Blockworks

share

US Senators, led by Elizabeth Warren D-MA and Angus King I-ME, are pushing for a faster roll-out of tax reporting regulations for crypto brokers, instead of a projected two-year timeline.

In a letter to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, the Senators pointed to potential lost revenues totaling $50 billion annually and the need to conform to the Infrastructure Investment and Jobs Act’s stipulations.

“We are alarmed by the self-inflicted two-year delay for the rule’s implementation, which would… disadvantage law-abiding Americans and cause the federal government to lose out on billions of dollars in tax revenue,” they said.

The billions of dollars in lost revenue are largely attributed to misunderstandings about crypto tax obligations or intentional tax evasion, according to the Senators.

In August, the IRS released a comprehensive 300-page proposal detailing crypto tax reporting guidelines with updated provisions relating to the definition of a “broker” as stipulated in the Jobs Act more than two years ago.

The act seeks to establish clear tax reporting standards for the crypto industry, attempting to provide, what policymakers have touted as, greater transparency comparable to other traditional financial sectors.

The senators commended the essence of the proposed regulations and the agencies’ endeavors to ensure continued crypto activity reporting by taxpayers. 

However, they had expressed significant concerns that the final rule would not be in effect until 2026, even though it had been initially scheduled for the next year.

The Treasury Department and IRS have taken nearly two years to promulgate rules concerning those stipulations, making it highly doubtful that the Administration would adhere to Congress’s directive, the senators said.

“Limiting any further delay in the implementation of the Administration’s proposed rule would combat industry efforts to evade regulation, provide clarity to law-abiding taxpayers and generate billions in tax revenue from a chronically tax-avoidant industry,” they said.

As such, policymakers are urging the agencies to implement the proposed crypto broker reporting rule as “rapidly as possible” and have requested an update by no later than Oct. 24.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Flashnote Template (6).png

Research

Trading of the President's TRUMP memecoin sent the market capitalization to over $15B, resulting in all-time highs for Solana’s Real Economic Value, DEX volumes, and stablecoin supply. This event further validates Solana as the venue for high-throughput onchain activity, with Solana DEXs and DeFi applications as primary beneficiaries, while also signaling to further experimentation, utilization, and adoption of memecoins as legitimate financial instruments for speculation, crowdfunding, or capital formation. President Trump’s continued willingness to experiment in crypto reaffirms a highly-favorable political and regulatory climate for the industry.

article-image

A Nova Labs exec referred to the last-day lawsuit “as irresponsible as it is wrong-headed”

article-image

Corresponding resolutions were introduced to “roll back the disastrous” rule requiring custodial brokers to report transactions

article-image

Donald Trump has slightly backed off from the ambitious tariff goals he touted on the campaign trail

article-image

Some have called it “a relief” that the task force will be led by the crypto-friendly Hester Peirce

article-image

By leveraging L1 validators for proofing and execution, native rollups remove the need for centralized sequencers and complex governance

article-image

The new task force shows that crypto’s officially entering a new era