The rapidly evolving crypto landscape requires global regulation and the implementation of taxation. Recently, it was observed that the stance of Indian authorities on crypto is unclear nevertheless, they have collected a significant $12 million as Tax Deducted at Source (TDS) from crypto transactions as reported by Todayq News on October 11, 2023.
U.S. senators push for quick Cryptocurrency taxation rules
Recently, seven members of the U.S. Senate, including senators Elizabeth Warren and Bernie Sanders, have requested the Treasury Department and the IRS to make rules about reporting taxes on cryptocurrency transactions as quickly as possible.
They’re upset because there’s been a two-year delay in making these rules, which are supposed to start in 2026 for transactions in 2025. The senators are worried that this delay could cost the IRS about $50 billion in tax money each year and allow people who aren’t following the rules to get away without paying taxes.
In their letter on October 10, 2023, to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, they said they support the rules but think waiting until 2026 is too long. They believe that a delay could give people who want to change the rules more time to stop them from happening. They want the government to act quickly to make sure people report their cryptocurrency transactions and pay their taxes.
Elizabeth Warren’s concerns over Cryptocurrency funding
In a recent post on X (formerly Twitter), Elizabeth Warren, while observing the ongoing conflict between Hamas and Israel, stated:
“It’s alarming and should serve as a wakeup call for lawmakers and regulators that digital wallets connected to Hamas received millions of dollars in cryptocurrencies.
However, the IRS issued new guidelines on July 31, impacting America’s DeFi sector. The guidelines required taxpayers staking cryptocurrency on proof-of-stake blockchains to report received validation rewards in their gross income within the same taxable year. Cash-method taxpayers had to determine the fair market value of rewards when they gained control over them, allowing selling, exchanging, or transacting.