The United States Internal Revenue Service (IRS), tasked with overseeing tax collection within the nation, has introduced a set of proposed regulations concerning brokers’ sale and exchange of digital assets. These guidelines mandate brokers to utilize a novel form, streamlining the tax reporting process and curbing instances of tax evasion.
The U.S. Treasury has emphasised that these regulations align digital asset reporting with reporting procedures for other asset categories. Envisioned to come into effect in 2026, these rules will encompass transactions carried out in 2025. Stakeholders are encouraged to submit written feedback on the proposal until October 30, with a scheduled public hearing to follow thereafter.
Mixed Reactions Surround New Crypto Tax Reporting Rules
The newly proposed regulations on cryptocurrency tax reporting have ignited a spectrum of responses from notable crypto figures.
Kristin Smith, CEO of the Blockchain Association, underscored the distinctions between the crypto realm and traditional finance.
Miller Whitehouse-Levine, CEO of DeFi Education Fund, characterized the rules as “confusing, self-contradictory, and misdirected.”
Ryan Selkis, CEO of Messari, asserted that the future of the crypto industry in the nation would hinge on President Joe Biden’s reelection.
Representative Patrick McHenry, Chair of the House Financial Services Committee, framed the proposal as an additional facet of the Biden Administration’s ongoing offensive against the digital asset ecosystem.
Gemini Counters SEC Lawsuit with Reply Brief
Cryptocurrency exchange Gemini has submitted a reply brief in its endeavor to dismiss an ongoing lawsuit levied by the U.S. Securities and Exchange Commission (SEC). Gemini contends that the SEC’s claims need more clarity and asserts that the court should approach the agency’s arguments with direct and uncomplicated inquiries.
The SEC’s case revolves around Gemini Earn, a service enabling the lending of crypto assets like Bitcoin to Genesis, which the agency alleges violated securities regulations by offering unregistered securities.
U.S. Court Rules: AI-Generated Art Denied Copyright Protection
U.S. District Judge Beryl Howell has upheld the stance of the U.S. Copyright Office, determining that artworks crafted exclusively by artificial intelligence (AI) are ineligible for copyright safeguarding. This verdict arrives amid growing concerns about the potential displacement of human artists and writers by generative AI.
The decision also coincides with ongoing legal deliberations surrounding AI companies’ usage of copyrighted material for training purposes. In California, multiple lawsuits have been filed by artists asserting copyright infringements, possibly necessitating AI entities to dismantle their language models.
U.K. Contemplates Ban on Crypto Investment Cold Calls
The United Kingdom is gearing up to ban cold calls related to financial matters, as indicated by the Treasury’s consultation paper. Seeking to assess the potential impact on businesses and the associated implementation costs, His Majesty’s Treasury has put forward a series of questions to stakeholders.
The envisioned blanket ban on financial cold calls aims to maximise repercussions for scammers while minimising disruptions for businesses that rely on cold calling as a prospecting tool. Stakeholders have until September 27, 2023, to contribute to the ongoing consultation process.