Monday, November 28, 2022

Coin Center Will Sue US Treasury Over Unconstitutional Tax Rule

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Crypto think tank Coin Center will sue the US Treasury over the unconstitutional tax reporting rule which was included in the 2021 law that galvanized the industry over separate broker rules so let’s read more today in our latest cryptocurrency news.

Coin Center will sue the US Treasury Department and the Internal Revenue Service on Friday over the claims that a crypto tax reporting requirement enshrined in a 2021 law is unconstitutional. The requirement will take effect in 2024, and it requires US Taxpayers who receive over $10,000 in crypto to report the social security numbers and other personal IDs of the sender. The provision was one of the few included in a 2021 infrastrcuture bill but also included a controversial tax reporting rule which applied to brokers. The provision galvanized the massive industry backlash but it was unsuccessful. The lawsuit said:

“The reporting mandate would force Americans using cryptocurrency to share intrusive details about themselves, both with each other and with the federal government. Under the terms of the mandate, everyday senders and receivers of cryptocurrency would be forced to reveal their names, Social Security numbers, home addresses other personal identifying information.”

The Head Of Treasury, yellen, 401k, funds, retirement
Janet Yellen. Source Forbes

Coin Center is concerned that these rules will require Americans to store information for up to a year in case any given set of transactions is deemed related and the total ultimately reached $10,000 or more. Treasury Secretary Janet Yellen and the IRS chief are both defendants in the lawsuit.

As recently reported, The head of treasury Janet Yellen commented on how it is not a good idea to include cryptocurrencies in retirement plans and called them a risky investment and that they should be regulated by Congress. The discussion around digital currencies in 401K saw the participation of the Department of Labor and senators Tommy Tuberville, Elizabeth Warren, and Cynthia Lummis. Yellen also said that Congress could regulate the type of assets which can be included in the retirement programs.

Treasury Secretary Janet Yellen highlighted Terra’s collapse and deep pegging of the stablecoins, saying that they should be regulated this year. In a hearing recently, she said that digital assets do promote innovation but they could also pose risks to the financial system. Yellen used the example of Terra which is a blockcahin that has a native stablecoin UST that slipped below its dollar peg yesterday.

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