The IRS new rule would essentially kill crypto inside the US, but we still have time to change it

If you haven't heard already, the IRS proposed a rules for crypto titled " Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions "

Here's an article by coindesk about the matter if you want more information : https://www.nasdaq.com/articles/irs-proposed-rule-on-digital-asset-broker-reporting-could-kill-crypto-in-america

These new rules would essentially force any entity that facilitates transaction on chain to report to the IRS as a broker. This means that they have to KYC all their users to send them a 1099 form that includes every single transaction.

These rules, if applied broadly could even impact liquidity providers, validators and miners.

Also, Uniswap, AAVE and other permissionless protocols are not built for this and it would basically make it impossible to use these inside the US due to the sheer amount of paper work.

These rules are completely unnecessary, people already use crypto and do their taxes, since everything is open and permissionless, it's easy to track your transaction and report your taxes. There's no need to KYC everyone and to give out sensitive information to multiple entities.

Senator Elizabeth Warren even sent a letter to the IRS urging them to implement these rules as soon as possible (in early 2024), since she's eager to completely kill this space. https://www.warren.senate.gov/oversight/letters/warren-king-senators-call-on-treasury-and-irs-to-to-align-crypto-industry-tax-reporting-rules-with-other-financial-industries

Fortunately, there is still time to comment on the rules, it takes around 3 minutes to do using AI to generate your comment and personalize it to make it effective. Please, if you care about this space and want it to succeed or if you are invested in it, take the time to leave a comment, there is still 5 days to do it and they will make a difference. Every thousand different comments about a topic usually slow their rule implementation by around 1 year and we can most likely make them change the rules.

Here's the tool : https://treasuryraid.lexpunk.army/

Just select the tone and the issues you want to highlight, then the website will take you to the commenting website and you can leave it there.