It only takes a few minutes to send a comment in and/or call your representative. The website standwithcrypto.org shows how to do it quickly.
The proposed regulation is here: Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions
This is devastation overbearing regulation that will require all CEXs, DEXs (ALL DeFi) to track to KYC/AML all US based customers. Expect most DeFi to leave the US if this occurs.
If approved it will go into affect staring January 2025 – only 14 months from now.
Thanks
Why would they need DEXs to do this? If it’s on an exchange you have ingress and egress info… What am I missing?
Fortunately I live in Europe but I encourage US citizens to fight for the rest of us because this can be the first movement in a domino effect.
iirc, crypto was intended as an alternative to corrupt markets.
Those having been early in crypto now wanting to turn crypto into what the CeFi world already is, a corrupt market full of criminals, seem to have forgotten that, but accidentally discovered how billionaires think.
Crypto is intrinsically public. It’s a feature, not a bug.
If you do not trust your government, move to a country where you trust the government.
Crypto will not change your issues with your own government. The only thing that changes issues with your government is an election.
Don’t try to turn national problems into a global problem.
I haven’t read it but wouldn’t it be simpler to do it on the wallet side if they wanted to do this? Wallet providers KYC you before giving you a wallet.
That way defi doesn’t need to do shit, wallets are not protocols but businesses, and then it would no peer to peer transactions too for money laundering.
I don’t think either is necessary. Especially if the government thinks it’s worthless lol.
DeFi pros & cons with related info are in the collapsed comments below.
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They will do this regardless.
This is the reason why they are ready to embrace crypto in the first place, it’s way easier to track than regular transactions.
They’re going to pass this “rule”. No amount of comments will stop them.
This isn’t a law. It’s an agency rule. An executive agency in the US can arbitrarily pass any rules they want. Remember net neutrality?
Surprise!
Blockchain, designed to create trust in transactions while maintaining anonymity… doesn’t maintain anonymity, rather it creates a tool for government to monitor your every transaction.
Didn’t see that coming at all…
Cute that you think the citizenship has any influence over what the tyrants want to do.
Speak up for it. KYC everything. Stop the criminals.
OP u/cyger,
You’re missing the point. They designed the bill so that they can do this!
We have to first find a candidate that has our views.
You are asking the group of people who drew this up to change their minds?
Ludicrous! We need to have candidate understand our positions. Not the other way around…
On another note, FinCEN has a rule to regulate single use wallets and mixers/coin join out of existence. This is currently up for public comments, but it is clearly asking for banking and financial comment, not retail (as if they give a damn what we think):
https://www.federalregister.gov/documents/2023/10/23/2023-23449/proposal-of-special-measure-regarding-convertible-virtual-currency-mixing-as-a-class-of-transactions
Invasion of privacy, Spying, assholes half tempt me to move!!!
Damn, it seems like your crypto must have a problem if the IRS can monitor your on chain activity.
I don’t have a problem with them using all the tools they have to enforce the tax laws. If you want the laws changed, change those not hamstring the enforcement. If you don’t want your on chain activity monitored, try using crypto that would prevent that.
Don’t use plain public ledger crypto and then say “aww man, the government can’t look at this public information I’m putting out there, that’s not fair”.
> Expect most DeFi to leave the US if this occurs.
DeFi was never meant for being beholden to regulation.
Comment deadline has been extended to Nov. 13: https://x.com/CryptoTaxGuyETH/status/1716812425989910689?s=20
I see tons of comments in this thread along the lines of “it doesn’t matter, they’ll do whatever they want anyways.” This is not true. First, they have to process all the comments, per the Administrative Procedure Act. This takes time and effort and at a minimum will delay implementation. Second, if they blatantly ignore a large number of substantive comments the regulation will be easier to challenge in court once implemented. (And you can be certain this one will be challenged in court if it gets implemented as is, if only because it’s so broad and unclear.) And third, if they get a huge amount of outcry there’s a chance they realize they’re on thin ice and will at least remove the worst aspects of the regulation.
So please don’t be complacent and defeatist. This is a moment where you can make a difference.
And this, ETHlords, is where you realize you fucked up.
If it’s actually decentralized there is nothing to fear, you expected this and you prepared for it.
If it’s not decentralized.. Well you’re fucked…
The US is a hysterical nation.
Use this too to easily generate and submit a comment: https://treasuryraid.lexpunk.army
Can you please post this in /r/EthTrader? I’ll sticky it.
Typical government overreach. We need less regulation, not more. This could really hurt crypto adoption.
Keep calm, fuck the IRS and use Monero
I love people here believing defi will last.
Governments won’t allow it unless they have a way to track it all and/or get their cut. That is really what it comes down to.
US government acts like mobsters in this regard.
Crypto will usher in extreme tyranny, not freedom.
Look at events worldwide. There is a huge push to put up cameras in a ton of cities across the world for crime and green energy use (monitoring us). In this little town next to me, literally a few thousand people they are installing cameras on majority of the streets to “help reduce crime”. Lmao, ok sure…. it is a very Progressive town, filled with wealthy people (average home is between 900k-1m), and the crime is minimal….
We are watching our freedoms be destroyed right infront of us.
All “DEX” but bisq.
You guys still need to learn what decentralization is about and that “DEX” built on Ethereum and other smart contract chains may look more sexy and convenient at first than those built as P2P networks similar to bittorrent, but they more often than not have a CEO and a company or a foundation behind them taht will be pressured by big government. Simply stop using pseudo DEX.
Love how we are always led to believe there is nothing you can do against the wealthy and yet the IRS is trying to make every single of crypto access point KYC’d/AML.
They were super quick to get that going and yet with trillions in debt theres been barely anything done.
I’m not seeing where it requires KYC on DEXes… but its a lot to read. Can you cite that to save us all a lot of pain?
So, the dollar’s gonna collapse and you guys just expect the government to switch to a currency with very spotty regulations and no taxes or tracking?
How high are you guys?
wow, did you know dYdX requires KYC including a face scan. They cannot be considered as a DEX.https://ihodl.com/topnews/2022-09-02/dydx-introduces-new-kyc-verification-faces-criticism/
This is why low cap PoW privacy coins are the hidden gems and talking about them gets removed. BitcoinZ is my favorite.
I am all for KYC everywhere. Crypto space has enough scams and anonymity helps them become even more.
This is needed regulation for mass adoption. If you aren’t evading taxes or making illegal purchases it won’t even have an effect on you.
KYC is the ONLY way you will get mass adoption and moonshot valuations.
Thanks for the heads up. Went and commented. Fuck this dusty, ass backwards country.
THEY CAN TRACK THESE FUCKING NUTS!
Look man. If it’s a DEX it can’t comply. Simple as.
Why should I even care?
Long live DEFI, you all motherfuckers who want KYC need to go back to stocks and leave crypto up to the big boys.
Why do they need to track it? That’s what the blockchain is for. Just submit your pubkey in your records.