In its relentless pursuit of expanded cryptocurrency oversight, the Internal Revenue Service (IRS) is poised to reshape the landscape of digital asset regulation. Recent developments indicate that the IRS’s endeavor to scrutinize cryptocurrency transactions may lead to a substantial upswing in confiscations. With expectations of monitoring Americans’ cryptocurrency usage through approximately 8 billion new returns, it appears that the Department of Justice (DOJ) may soon possess the requisite tools to initiate cryptocurrency confiscations at an unprecedented pace.
The genesis of this situation can be traced back to a 2022 report issued by the DOJ in response to Executive Order 14067. For those who might require a refresher, Executive Order 14067 marked President Biden’s initial foray into the realm of cryptocurrency governance. Although apprehension initially loomed over the prospect of a sweeping crackdown, the executive order, for the most part, deferred substantial changes and instead called upon various agencies to compile reports for the purpose of shaping future cryptocurrency-related policies.
