Coin Center on the Proposed IRS Broker Rules

The so-called broker rule, laid out by the IRS in a tax reporting proposal has been at times called unconstitutional, unprecedented in scope and an existential threat for the cryptocurrency industry. Indeed, by expanding the definition of a broker — a well-defined term in the context of traditional finance, with some analogues in the digital asset industry — to just about anything that touches code in crypto, the proposed rule would likely be “overbroad.” The rule has been officially adopted, the IRS is holding back-to-back hearings on the proposal, and has extended the public comment period — over 120,000 responses have already been filed.