The crypto world is not liking President Joe Biden and his administration right now. A piece of Treasury crypto news has investors paying close attention, especially as talk of regulation grows. It seems that Biden is attempting to put digital currencies in a stranglehold with a new set of tax proposals.
Thursday is seeing the first major details of a crypto-centric tax proposal. The Treasury Department is reporting that the proposal includes a requirement for business crypto transactions in excess of $10,000 to be reported to the IRS. This will be the second major step of the IRS regarding crypto regulation.
The first came last year with the Form 1040 addendum, which saw the bureau attempting to get a better look into crypto transactions.
The rule affects business transactions. Recently, a handful companies have begun to bolster their operations with crypto purchases. Elon Musk’s Tesla (NASDAQ:TSLA) is one of the most notable examples; it purchased $1.5 billion in Bitcoin (CCC:BTC-USD) in February.
What to Know About the Treasury Crypto News
Although the latest news mostly concerns businesses doing transactions in crypto, there are a few other ramifications of the proposal. The Treasury also note provisions for levying these new requirements on crypto exchanges and custodians. Elaborating on the motivations for these changes, the Treasury says “cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion.”
Unsurprisingly, the news isn’t going over well with investors. Cryptocurrencies are popular because of their lack of regulations; people want decentralized financial solutions because they allow them more control over their money.
As such, many investors are taking to social media to share their views on the Treasury crypto news. Calling out institutions for trying to strong-arm the asset class, speculating over whether the government even has the understanding of crypto necessary to regulate it, and of course, good old-fashioned memes are flooding the platform.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.