Crypto Backers Warn IRS Against Its Broker Reporting Rules

Crypto industry executives and stakeholders called for changes to the IRS and Treasury Department’s proposed digital assets broker reporting rules Monday, saying they are overly broad, would damage the industry, and violate constitutional rights.

Thirteen speakers piled into an agency call-in hearing, raising issues on everything from definitions of brokers and intermediaries and privacy concerns around reporting all transactions to unintended impacts on corners of the digital assets industries outside non-fungible tokens, or NFTs, and cryptocurrencies.

Speakers also argued that the IRS lacks the funds and infrastructure to handle the volume of reporting.

“The IRS and taxpayers will be ...