Blockchain company Consensys has expressed concerns about proposed cryptocurrency regulations from the IRS, urging the tax agency to carefully consider the complexities of the crypto industry when finalizing rules.
In a blog post on December 21, Consensys highlighted that the proposed regulations would impose “a new and complex regulatory scheme” on software developers and crypto businesses.
The company warned that the rules as drafted could force dramatic changes for developers, potentially disrupting innovation.
Specifically, Consensys said the analysis underpinning the proposed regulations is incomplete and could result in regulated parties being unable to actually comply.
The company pointed out that an “overwhelming percentage” of crypto businesses affected are small operations that would be particularly burdened.
As a result, Consensys is recommending a delay in implementation deadlines and a phased-in approach for the more challenging aspects of the regulations.
The company emphasized the need for care and precision in structuring reporting requirements that reflect how digital asset platforms work.
The proposed IRS regulations, introduced in September, aim to broaden existing reporting rules to cover more crypto transactions.
They would require brokers to submit detailed information returns on certain crypto sales and exchanges starting in 2026.
Also Read: Consensys voices concerns over IRS proposed rulemaking for crypto
