Today, The Chamber of Digital Commerce expressed concerns regarding the Treasury’s recent Notice of Proposed Rulemaking on digital asset reporting requirements. 

While The Chamber acknowledges Treasury’s intent to ensure fiscal responsibility and maintain oversight, it is paramount that regulation in the digital asset space is crafted with precision, foresight, and a deep understanding of the technology and its implications.  

The recent proposal risks stifling innovation, adding undue burdens on businesses, and inadvertently pushing digital asset endeavors outside of the United States. 

“We look forward to providing comments and feedback to Treasury and the IRS,” said Cody Carbone, Vice President of Policy. “While it’s imperative for crypto traders to adhere to tax regulations, it’s equally crucial that guidance for crypto users and platforms aligns with existing tax norms, ensuring they aren’t unfairly targeted.” 

The diverse nature of the digital asset ecosystem is not analogous to traditional financial systems. By imposing a one-size-fits-all approach, we risk oversimplifying a complex landscape, leading to unintended consequences and potential harm to businesses, innovators, and consumers alike. 

In comments ahead of the October deadline, the Chamber will urge the Treasury Department and the IRS to consider the broader implications of this proposed rule. The Chamber of Digital Commerce, along with its members, are eager to engage in a constructive dialogue to ensure that any final directives reflect the nuances of the digital asset ecosystem.