John Deaton Criticizes New Cryptocurrency Tax Reporting Rule – BitRss

XRP advocate Attorney John Deaton criticized the new cryptocurrency tax reporting rule released by the Biden administration. The regulation titled “Gross Income Reporting by Brokers Facilitating Digital Asset Sales,” presented by the IRS, is viewed negatively by Deaton in relation to decentralized finance (DeFi).

Scope of the New Tax Rules

The IRS’s recent announcement mandates that brokers facilitate digital asset transactions, report gross income, and provide Form 1099 to clients. This regulation also includes the collection of user information such as names and addresses.

Deaton pointed out that these rules unfairly target DeFi platforms. The autonomous and permissionless smart contracts of DeFi cannot comply with these requirements without central control or intermediaries capable of collecting user data.

“Applying such requirements to DeFi will stifle innovation and drive developers and projects abroad.”

Criticism of Attitudes Toward Cryptocurrencies

The attorney also criticized Senator Elizabeth Warren’s anti-crypto stance and her relationships within the banking industry. He stated that Warren’s financial policies and strict