The Digital Chamber, a leading blockchain trade association, has voiced significant concerns about the IRS's proposed tax reporting guidelines for digital assets.
They argue that the draft form 1099-DA unnecessarily demands sensitive information such as wallet addresses and transaction IDs, urging the IRS to simplify the requirements to alleviate taxpayer burdens.
This feedback has been echoed by critics and stakeholders in the crypto community, highlighting worries over the complexity of the regulations and their potential to stifle market growth.
In response, there has been increased interest in privacy-centric solutions like privacy coins to protect transaction anonymity.
The Digital Chamber also stressed the importance of clear guidance from the IRS and advocated for tailored approaches to different segments of the crypto industry to ensure compliance without compromising privacy.