Will US Treasury proposals kill defi? Critics blast new crypto bill
The US Treasury Department recently revealed a proposal outlining new tax rules for the cryptocurrency industry. Among the updates is the introduction of a 1099 form for crypto transactions. The new guidelines also clarify tax obligations for digital asset miners. The proposed bill appears to exempt miners while potentially impacting cryptocurrency exchanges, causing backlash from the industry, especially decentralized finance (defi) professionals. A tailored tax form The proposed regulations come as a response to the 2021 Infrastructure Investment and Jobs Act, aiming to clarify tax reporting requirements for the rapidly evolving crypto sector. The document, released on Aug. 25, outlines the responsibilities that centralized crypto exchanges, payment processors, hosted wallet providers, and some decentralized exchanges will have regarding reporting obligations. The proposal mentions introducing a tailored tax form, known as the 1099-DA, specifically designed for crypto tra...