New tax rules for crypto in the US: Law Decoded
The United States Internal Revenue Service (IRS), which is responsible for tax collection in the United States, has released proposed regulations on the sale and exchange of digital assets by brokers. Under the rules, brokers would be required to use a new form to simplify tax filings and cut down on tax cheating. According to the U.S. Treasury, the regulations bring digital asset reporting into line with reporting on other types of assets.
The proposed rules would go into effect in 2026 to reflect sales and exchanges carried out in 2025. Written comments on the proposal are being accepted through Oct. 30, with at least one public hearing to be held after that date.
Several prominent crypto commentators have criticized the new crypto tax reporting rules. Kristin Smith, the CEO of the Blockchain Association, highlighted the difference between the crypto ecosystem and traditional finance. DeFi Education Fund CEO Miller Whitehouse-Levine called the rules “confusing, self-refuting, and misguided.” Messari CEO Ryan Selkis stated that President Joe Biden’s reelection would mean no future for the crypto industry in the country. Representative Patrick McHenry, the House Financial Services Committee chairman, called the proposal “another front in the Biden Administration’s ongoing attack on the digital asset ecosystem.”
Gemini files brief to dismiss SEC lawsuit
Cryptocurrency exchange Gemini has filed a reply brief as part of its efforts to dismiss the lawsuit it is facing from the U.S. Securities and Exchange Commission (SEC). The company argues that the SEC has failed to make a clear claim. It further argued that the court shouldn’t tackle the “convoluted analyses” presented by the SEC, and the agency should pose straightforward questions to determine whether it qualifies as a security. According to the SEC, Gemini Earn — a service enabling customers to lend crypto assets like Bitcoin to Genesis — breached securities regulations by offering unregistered securities.
No copyright for AI-generated art, U.S. court rules
U.S. District Judge Beryl Howell upheld the stance of the U.S. Copyright Office that artworks created solely by artificial intelligence (AI) are not eligible for copyright protection. The verdict came amid growing worries about the possibility of generative AI replacing human artists and writers, as well as ongoing legal discussions about AI firms using copyrighted content for training. Multiple lawsuits in California have been filed by artists claiming copyright violations, which might lead to AI companies needing to disassemble their language models.
U.K. might prohibit crypto investment cold calls
As the United Kingdom prepares for a ban on finance-related cold calls, His Majesty’s Treasury has issued a consultation paper calling for evidence to gauge the full impact on businesses and the costs associated with introducing and implementing the ban. Intending to impose a blanket ban on financial cold calls, the Treasury put forth 19 questions to stakeholders to ensure maximum impact on scammers and minimum effect on businesses that often rely on cold calling prospects. The consultation closes on Sept. 27, 2023.
