Coin Center, a non-profit research and advocacy organization focused on the public policy aspects of cryptocurrency and blockchain technology, has sent a letter to Congress seeking clarity on the tax treatment of cryptocurrency.
The letter, which was signed by Coin Center Executive Director Jerry Brito, argues that the current state of cryptocurrency taxation is "ambiguous and confusing," and that this is hindering innovation in the space.
The letter specifically highlights the following areas of ambiguity:
- The definition of a "cryptocurrency" for tax purposes
- The treatment of cryptocurrency forks
- The treatment of cryptocurrency airdrops and other forms of distribution
- The treatment of cryptocurrency transactions that are not for profit
- Coin Center is urging Congress to provide clear and concise guidance on these issues in order to promote the growth of the cryptocurrency industry.
The letter comes at a time when the IRS is increasing its enforcement of cryptocurrency taxes. In recent months, the IRS has issued a number of guidance documents on cryptocurrency taxation, and it has also begun to audit taxpayers who have engaged in cryptocurrency transactions.
Coin Center argues that the IRS's enforcement efforts are "chilling innovation" in the cryptocurrency space. The letter states that "the IRS's current approach to cryptocurrency taxation is creating uncertainty and fear among taxpayers, which is preventing them from participating in the cryptocurrency economy."
Coin Center is urging Congress to take action to clarify the tax treatment of cryptocurrency in order to promote innovation and growth in the space.
The letter concludes by stating that "the cryptocurrency industry is a rapidly growing and evolving sector of the economy, and it is essential that Congress provide clear and concise guidance on the tax treatment of cryptocurrency in order to promote its growth and innovation."
The letter was sent to the following members of Congress:
- Speaker of the House Nancy Pelosi
- Senate Majority Leader Chuck Schumer
- House Ways and Means Committee Chairman Richard Neal
- Senate Finance Committee Chairman Ron Wyden
- House Financial Services Committee Chairwoman Maxine Waters
- Senate Banking Committee Chairman Sherrod Brown
- Coin Center is a non-profit research and advocacy organization focused on the public policy aspects of cryptocurrency and blockchain technology. The organization was founded in 2014 by Jerry Brito and others. Coin Center has been a vocal advocate for clear and fair cryptocurrency regulation.
The letter to Congress is part of Coin Center's ongoing efforts to promote clarity and certainty in the cryptocurrency tax landscape. The organization is also working to educate taxpayers about their cryptocurrency tax obligations.