TechFlow news — A group of senators led by Democratic Senator Elizabeth Warren and Independent Senator Bernie Sanders are urging U.S. tax officials to accelerate the start date for cryptocurrency brokers and exchanges to report customer transaction data to the government.
Proposed regulations issued in August by the IRS and the Department of the Treasury would require these companies to begin reporting digital asset sales and trading data starting in 2026—two years later than originally planned when Congress passed the legislation in 2021. In a letter sent late Tuesday to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, Warren and others stated, “We are alarmed that the implementation of this rule has been delayed by two years,” which they said could cause the U.S. to miss out on billions of dollars in tax revenue. “We urge the agencies to finalize and implement these rules as quickly as possible, while preserving the core substance of the regulations in the face of industry attacks.”
The Treasury Department says the delay gives brokers more time to adapt to the requirements, and the new rules have not yet been finalized. Chris Hayden, a Treasury spokesperson, said in an email on Wednesday that the department has “been working diligently” to implement the 2021 law and proposed regulations, and will carefully consider all feedback received. The government says once implemented, the rules will help improve individual tax compliance and make it easier to combat tax fraud.
To date, the IRS and Treasury have received over 90 public comments on the proposal. This debate is expected to be a key topic at a public hearing scheduled for November 7.
