Pro-Crypto Lawyer Flags Hyper-Surveillance of Crypto Tax Payers

Godfrey Benjamin
January 16, 2025
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Crypto Taxation Takes Effect in Nigeria: New Regulations Explained

Highlights

  • There are visible changes in the US crypto tax system or Form 1040
  • Top lawyer called out new surveillance in the filing system for crypto investors
  • Crypto ecosystem are demanding changes in the US Treasury under incoming Trump administration

Pro-digital currency attorney MetaLawMan has called out the unfair surveillance of Americans with a crypto tax obligation moving forward. Considering the American tax filing system changes, MetaLawMan said he had to flag some clauses for 50 million crypto holders.

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Changes on Crypto Tax New Filing System

According to MetaLawMan, the IRS Form 1040 poses a question at the top of the page under the filing status. The question reads; 

“At any time during 2024, did you: 

(a) receive (as a reward, award, or payment for property or services); or 

(b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset?)”

While the question is presumably to uncover whether the tax filer has realized crypto gains, the inquiry is not generalized. He noted that the mainstream tax filers dealing with gold, silver, stock, or real estate are not asked similar questions.

MetaLawMan believes this is a special surveillance of the crypto industry, an anomaly that needs to be corrected. He specifically tagged Crypto & AI Czar David Sacks amid an industry-wide push for accountability.

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Controversial IRS Position

This surveillance flag stems from an earlier controversy regarding DeFi broker tax rules the Internal Revenue Service (IRS) rolled out in December. Per the new rules, crypto exchanges, including the DeFi platform, were mandated to report user transactions to the regulator.

The demand, especially from the Decentralized Exchange standpoint, forced the DeFi Education Fund to sue the IRS. This lawsuit has attracted support from members of the digital currency ecosystem, with many calling for its repeal.

The controversial stance of the U.S IRS and the Treasury Department also spanned staking services. The markets regulator unveiled plans to tax proceeds from crypto staking last year, another controversial move.

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Bringing Clarity to the US Treasury

In a bid to correct the crypto tax surveillance of crypto investors, all eyes are on the US Treasury and changes that might be introduced under President Donald Trump.

Trump has already nominated Scott Bessent to lead the Treasury Department. Scott Bessent is pro-crypto, and many are expecting crucial changes, including a potential repeal of SAB-121 accounting rules and bringing clarity on tax related affairs.

Already, anti-crypto Senator Elizabeth has requested Bessent to adopt strict measures on crypto; it now remains to be seen whether he will trail this path.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.