Pro-Crypto Lawyer Flags Hyper-Surveillance of Crypto Tax Payers
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.
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.
Time to Stop the Hyper-Surveillance of Lawful Digital Asset Holders in the U.S.
What do I mean?
IRS Form 1040 poses this question near the top of page one–right under Filing Status:
“At any time during 2024, did you:
(a) receive (as a reward, award, or payment for property…— MetaLawMan (@MetaLawMan) January 16, 2025
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.
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.
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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