Coinbase's Chief Legal Officer opposes the cryptocurrency tax reporting regulations proposed by the U.S. Treasury Department

ChainCatcher news, Coinbase's Chief Legal Officer Paul Grewal expressed opposition on social media to the U.S. Treasury's proposed cryptocurrency tax reporting regulations, which relate to fairness and innovation in the emerging industry. Paul Grewal stated that the proposed regulations go far beyond Congress's authorization, establishing tax reporting rules equivalent to those of traditional finance, placing digital assets at a disadvantage, and potentially harming the nascent emerging industry. These rules also require reporting of nearly all digital asset transactions, even the purchase of a cup of coffee, setting a dangerous precedent for monitoring consumers' daily financial activities. Collecting such data has no legitimate public purpose and could impose a heavy burden on Web3 startups, exceeding the data analysis capabilities of the IRS.