US Treasury, IRS propose cryptocurrency regulations for brokers

Two United States federal agencies — the Department of the Treasury and the Internal Revenue Service (IRS) — have released a set of cryptocurrency regulations proposal detailing brokers’ reporting requirements.

The Office of Advocacy of the U.S. Small Business Administration revealed that the proposal around crypto regulations for brokers was released on Aug. 29. It

The United States Government Accountability Office, a congressional watchdog agency, released a 77-page report highlighting the need for stricter regulations around cryptocurrencies.

Blockchain technology—like #cryptocurrency—could offer faster, cheaper financial transactions. But recent price crashes & bankruptcies have raised concerns about gaps in federal regulations that could put consumers at risk. Our new report & video explore: https://t.co/1vyIgZVaYi pic.twitter.com/nxHrk1g5dQ

— U.S. GAO (@USGAO) July 24, 2023

The report identified the spot markets for nonsecurity crypto assets as the center of a regulatory gap and stated:

“By designating a federal regulator to provide comprehensive federal oversight of spot markets for nonsecurity crypto assets, Congress could mitigate financial stability risks and better ensure that users of the platforms receive protections.”

On the other hand, traditional assets in that category enjoy robust regulation, the report noted.

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