In brief
- IRS Commissioner Charles Rettig, a holdover from the Trump administration, testified before the Senate Committee on Finance this morning.
- He asked for explicit congressional authority to issue new regulations on cryptocurrencies.
In a hearing before the Senate Finance Committee, IRS Commissioner Charles Rettig asked for explicit congressional authority to regulate cryptocurrencies.
Responding to a question from Senator Portman (R-OH) about whether or not the IRS currently has enough authority to regulate crypto, Rettig said, “I think we need congressional authority."
He continued: "We get challenged frequently, and to have a clear dictate from Congress on the authority of us to collect that information is critical. And the most recent market cap in that world—in the crypto world—exceeded $2 trillion and more than 8,600 exchanges worldwide. And by design, most crypto, virtual currencies are designed to stay off the radar screen, so—we will be challenged."
Under Rettig, a Trump appointee, the IRS has issued John Doe summonses as a way of gleaning information about U.S. taxpayers who use cryptocurrencies. But Rettig claims the agency's efforts are often challenged.
What the IRS Tax Rule Update Means for Bitcoin Forks
Earlier this month, the IRS announced an update to its rules for how forked crypto is taxed, using Bitcoin Cash as a sample case. Some context: in 2017, a new cryptocurrency called Bitcoin Cash (BCH) was spun off of the original Bitcoin blockchain in a development process called a “fork.” Since the split, BTC and BCH have operated on two distinct, incompatible blockchains. However much Bitcoin you held at the time of the fork was how much Bitcoin Cash you ended up with. The IRS has said for year...
The market capitalization of the crypto market hit $2 trillion in April, when the price of Bitcoin was around $60,000, though it's since sunk back down to $1.5 trillion, according to data from CoinGecko.
"We do need additional tools, and we absolutely need additional resources," concluded Rettig.
