Biden-Backed Bill Triggers IRS Reporting For $10K+ Crypto Transactions In 2024 — Coin Center Responds
Portfolio Pulse from Mehab Qureshi
The infrastructure bill backed by President Biden, which mandates cryptocurrency brokers to report transactions over $10,000 to the IRS, is now in effect. The law aims to reduce the tax gap and requires the submission of client details within 15 days. Coin Center's executive director Jerry Brito expressed concerns about the practical challenges and risks of non-compliance for users, highlighting the difficulties in reporting transactions involving anonymous or decentralized exchanges.
January 03, 2024 | 7:04 am
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NEGATIVE IMPACT
Bitcoin may face increased scrutiny and potential selling pressure as users and brokers navigate new IRS reporting requirements for transactions over $10,000.
The new reporting requirements may lead to a decrease in the attractiveness of large Bitcoin transactions due to the increased regulatory burden and privacy concerns. This could result in short-term selling pressure as users adjust to the new compliance landscape.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Ethereum could experience similar challenges as Bitcoin, with the new IRS reporting rules potentially dampening transaction activity and investor sentiment.
Ethereum transactions over $10,000 will now require reporting to the IRS, which could lead to reduced transaction volumes and investor caution, negatively impacting Ethereum's price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70