The proposed redefinition of a single word in a federal tax rule by the U.S. Treasury and the Internal Revenue Service (IRS) would, if adopted, permanently destroy or push offshore any decentralized finance (DeFi) project in the United States, the Blockchain Association said Monday.

In a blistering, 33-page comment submitted today regarding the proposed change, the leading crypto lobbying group laid out an elaborate case to the IRS as to why a seemingly bureaucratic change to the tax collector’s definition of the word “broker,” which the agency proposed in late August, would all but destroy the American DeFi industry.

Among other things, the rule would broaden the term “broker” to apply to any centralized crypto exchange operating in the United States, or to any crypto project that directly or indirectly facilitates the transfer of digital assets belonging to another person. This would, the group said, apply to any DeFi protocol, thus making American centralized exchanges and decentralized finance projects subject to the same reporting rules as bond and stock brokers. 

The Blockchain Association says this is an Go to Source to See Full Article
Author: Sander Lutz

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details