The Clarity Act won’t lead to adoption without crypto tax reform The legislation is being framed as a turning point for U.S. crypto policy, but there’s a major piece of the puzzle being overlooked, argues Singh.
A growing number of people see the Clarity Act, which intends to establish clear and enforceable guardrails for the U.S. crypto industry, as a sign that Washington has firmly closed the door on the “regulation-by-enforcement” approach seen under the Biden administration to a more structured framework for the crypto industry
And look, on paper, it’s a major step forward. There is no doubt the Clarity Act offers clearer definitions and a more coherent regulatory perimeter for the industry. But regulatory clarity does not automatically lead to adoption.
Because even if Congress gets the market structure right, the U.S. crypto tax framework, in its current form, is still a bit messy and complicated. Form 1099-DA is confusing for crypto investors On paper, Form 1099-DA, which any business defined as a crypto broker must issue, is about transparency, standardized reporting and improved compliance. The Form 1099-DA asks crypto users for the number of assets, acquisition date, sale and disposal date, as well as specific sections for aggregated transactions for stablecoins and NFTs.