Senator Elizabeth Warren is urging the US government to rethink its decision to delay crypto tax rules by two years. In a letter to the US Treasury Secretary, Janet Yellen, and the IRS Commissioner, Daniel Werfel, Warren expressed concern about the delay until 2026, stating that it goes against the Infrastructure Investment and Jobs Act. She worries that this delay disadvantages law-abiding Americans and causes the government to lose out on billions in revenue.
Warren pointed out a lack of understanding among US citizens about crypto taxes, leading to the IRS missing out on an estimated $50 billion a year in tax revenue from the crypto industry. Despite this, she praised the government’s clear definition of digital assets, stating it provides flexibility for the evolving crypto landscape.
Warren requested an update on the matter by October 24th, following the proposed regulations by the US Department of Treasury and IRS targeting the sale and exchange of digital assets by brokers. The focus is on combating tax evasion by ensuring digital asset brokers report specific sales and exchanges to authorities, aligning tax reporting on crypto profits with traditional investments.