Senator Warren Elizabeth Urges U.S. to Speed up Crypto Tax Rules

Senator Elizabeth Warren is telling the US government to think again about waiting two years to start new crypto tax rules in the country.

In a letter, Warren spoke to US Treasury Secretary, Janet Yellen, and the head of the Internal Revenue Service (IRS), Daniel Werfel. She is worried about the planned two-year wait to start making crypto rules, saying it goes against the bipartisan Infrastructure Investment and Jobs Act and isn't fair to Americans who follow the law. She thinks the wait will cause the US to lose "billions of dollars in revenue."

Warren says many US citizens don't know how crypto taxes work, causing the IRS to lose lots of money. "In 2022, experts claimed that the IRS was losing around $50 billion a year in tax by not taxing the big cryptocurrency industry," she noted. Still, she liked the fact that the US government has a clear idea of what a digital asset is, which allows for changes in the quick-moving crypto world.

She has asked Yellen and Werfel to give new information about this by October 24th. New rules that focus on how digital asset brokers deal with sales and trades of crypto were recently proposed by the US Department of Treasury and IRS. If these rules get implemented, brokers will have to report certain sales and trades to the government. This is to make tax reporting for crypto profits similar to usual investments and to help the government fight tax dodging.