US Lawmaker Elizabeth Warren Pushes for Faster Tax laws
U.S. lawmakers urge faster action to close crypto tax loopholes, risking $1.5bn tax revenue loss.
Several U.S. lawmakers are pushing the Internal Revenue Service and the Treasury to quickly close tax loopholes being used by those trying to avoid taxes in the crypto space.
On Aug. 1, Democratic Senators including Elizabeth Warren, Bernie Sanders, and others sent a letter to these agencies. They warned that without fast action, the U.S. could miss about $1.5 billion in tax money for the 2024 fiscal year because of a "$50 billion crypto tax gap".
The senators are talking about new tax laws in the $1.2 trillion infrastructure bill passed in 2021. This bill aimed to increase tax reporting requirements for businesses dealing in crypto.
Despite the bill becoming law, the Treasury and the IRS haven't released the new tax rules. They have until Dec. 31 to publish and implement these rules, but the senators want this done sooner.
Elizabeth Warren has been critical of the crypto industry, even creating an “anti-crypto army” for her Senate re-election campaign. Bernie Sanders has been less vocal, but he has supported Warren's efforts for stricter rules on crypto.
A recent survey by Grayscale Investments showed that many Democrats (59%) and Republicans (51%) believe crypto is the future of finance. This suggests that Warren's anti-crypto stance might not be popular with most voters.
