The U.S. Treasury is wasting no time trying to get control of crypto transactions and the world of decentralized finance (DeFi). Its new report, The American Families Plan Tax Compliance Agenda, shows just how serious the IRS is about the threat to its bottom line: “Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” reads the report. “This is why the President’s proposal includes additional resources for the IRS to address the growth of cryptoassets.”

The main selling point of DeFi is that all transactions are automatic, regulated only by the terms of smart contracts and, importantly, without central authorities. If you’re wondering, in the U.S., the IRS is “the” central authority. Clearly, they are not pleased about DeFi.

To shamelessly plug my new eBook, I cover this topic from several angles in my new #1 Best SellerBlockchain – Cryptocurrency, NFTs & Smart Contracts: An executive guide to the world of decentralized finance. (It’s only $2.99, and you can do well by doing good, as I’m donating the proceeds to Girls Who Code. They are building the world’s largest pipeline of female engineers.)

This new report is the opening gambit from the U.S. Government. Unsurprisingly, it is dealing with the symptom (potential lost tax revenue), rather than the cause. For the IRS to truly do what they say they are intending to do, America will need to adopt financial policies indistinguishable from China’s recently publicized DeFi policy.

Pay attention to this. It is a fight that will escalate quickly. Taxes are the lifeblood of every government. You can’t monitor or verify DeFi transactions unless you monitor internet access. It might be time to reread 1984. Have a great weekend.

 

Want to chat about a blockchain project?

If the form is not visible, click here.

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it. I am not a financial advisor. Nothing in this article should be considered financial advice. If you are considering any type of investment you should conduct your own research and, if necessary, seek the advice of a licensed financial advisor.

About Shelly Palmer

Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and the CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and CNBC and writes a popular daily business blog. He’s the Co-Host of the award-winning podcast Techstream with Shelly Palmer & Seth Everett and his latest book, Blockchain - Cryptocurrency, NFTs & Smart Contracts: An executive guide to the world of decentralized finance, is an Amazon #1 Bestseller. Follow @shellypalmer or visit shellypalmer.com.

Tags

Categories

PreviousAmazon Said to Make $9 Billion Offer for MGM NextIs Crypto Dead?

Get Briefed Every Day!

Subscribe to my daily newsletter featuring current events and the top stories in technology, media, and marketing.

Subscribe