The crypto community reacts to Biden's proposed crypto tax rules

There are many prominent crypto commentators who are concerned that this will further discourage crypto firms from doing business in the United States.

United States President Joe Biden recently proposed new crypto tax reporting rules, which have been criticized by several prominent crypto commentators.

To prevent crypto users from avoiding taxes, the Internal Revenue Service (IRS) proposed new rules for brokers to follow when selling and trading digital assets. Brokers would use a new form to make tax filing easier.

Treasury officials indicated that the proposed rules would make digital asset reporting similar to reporting on other assets.

However, many in the crypto community believe that the stringent rules will further distance the United States from the crypto industry.

Among those who responded unfavorably to the news was Messari CEO Ryan Selkis, who said the crypto industry will not prosper if Biden wins reelection.

Some remain skeptical that neither the Democrats nor the Republicans will adequately support crypto interests in the United States.

According to a user, "I'm not confident either party would be good for crypto. But it definitely feels worse now than under the last administration," as another pointed out that the new rules raise privacy concerns:

"The US's devotion to income tax means they cannot accept private transactions on public ledgers without tax and sanction surveillance."

It was reported on Aug. 25 by Cointelegraph that Kristin Smith, CEO of the Blockchain Association, had reservations about merging digital asset reporting with traditional asset reporting.

Smith said that crypto ecosystems differ significantly from traditional assets, so the rules must be tailored accordingly and not capture ecosystem participants without a pathway to compliance.

To reduce mining operations, Biden suggested imposing taxes on crypto mining.

According to a budget proposal dated March 9, there would be an "excise tax equal to 30 percent of the cost of electricity used for digital asset mining."

These 4 bills could determine the future of US crypto.

In the U.S., the crypto industry has repeatedly expressed concern about regulatory decisions that affect innovation.

Grayscale Investments CEO Michael Sonnenshein said the Securities and Exchange Commission's constant enforcement action will drive crypto firms abroad.

Sonnenshein stated, "If every crypto issue must go to court, we are squashing the innovation taking place here."

According to Brad Garlinghouse, CEO of Ripple, the crypto industry is shifting away from the U.S. due to its slower crypto regulation process compared to Australia, the United Kingdom, and Singapore.