IRS Pushes for Further Crypto Regulations as Bitcoin Price Slumps to $32k
The Internal Revenue Service (IRS) has strengthened its resolve to regulate digital assets in its latest clamour for crypto regulations. The IRS’s recent push follows the outcome of immediate past US President Donald Trump’s interview on Fox Business on Monday where he hammered on his opinion that Bitcoin is a scam. Tokenhell’s report on the event on Monday carried details of the outcome. Donald Trump has maintained that Bitcoin is not a store of value. The price of Bitcoin tanked from the region of $34,000 to $32,000 on Monday in view of this.
The internal Revenue Service latest call for regulations on crypto assets aligns with attempts made by Donald Trump in July 2019 while he was the incumbent president, to regulate crypto assets. Reports had it then that he had told Steve Mnuchin to go after Bitcoin. Many other anti-crypto folks like long-time Warren Buffet have likewise advised people against adopting crypto upon the premise that it is a phase that would soon pass away. Thus, it was not reliable. JPMorgan Chase’s Jamie Dimon has also been one of Bitcoin’s popular critics.
The head of US IRS, Charles Retting at the Finance Committee hearing in the Senate had requested for more tools in regulating crypto assets. He was quoted saying, “We do need additional tools. We absolutely need additional resources.” He further said he would love to partner with the congress in seeing that the clamour for further cryoto regulations come into fruition. The crypto market has been receiving hard knocks since the middle of May based on news like this. At the beginning of the downtrend of the crypto market, Tesla had come out to say that they were not willing to accept Bitcoin payments in return for their electric vehicles anymore. Since then, Tesla’s boss, Elon Musk has been on a manipulation spree in the market.
Bitcoin’s Price Struggling Since Mid-May
A series of events in May saw the price of bitcoin collapse from the all-time-high of $64,683 to $36,000, then down to $30,000. The IRS call for regulation is a bearish event that has caused the price of Bitcoin to slump to $32,000. We may see a further downturn in the total market cap of the crypto market which currently stands at $1.7 trillion after mounting to the height of $2.6 trillion, following this news.
The Head of IRS observed that a large number of cryptocurrencies were created to stay “off the radar.” Following up on its actions, the IRS has issued summons to different cryptocurrency exchanges compelling them to submit all users’ data. Joe Biden’s administration seems to be living up to its intention to impose a 40% tax on crypto transactions summing up to $10,000 and above. The Treasury Department has issued directives to crypto enterprises to reveal transfers over $10,000 to the Internal Revenue Service beginning from 2023. Joe Biden is looking to expand the IRS staff strength to support its efforts. Charles Retting’s latest comments triggered a drop in the price of Bitcoin to a new low of $32,025 at 3:24 p.m. UTC on crypto exchange BitStamp.
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