Does Coin Center’s Lawsuit Against the US Treasury Make Sense?

Advocacy group challenges tax amendment designed to curb money laundering

One step forward, two steps back is not just a catchy, lyrical phrase, it is an extremely accurate metaphor that applies to numerous situations in life and business. Take, for example, the business of decentralized finance and the US government’s attempts to regulate its crypto currencies like bitcoin or ethereum, and crypto currency-based products, such as NFTs — the description fits like a soft, leather glove. Month after month both sides advance and retreat, advance and retreat.

Case in point, a crypto advocacy group named Coin Center recently filed suit against the US Treasury, rightly challenging a recent tax rule recently instituted by the White House that was designed to curb money laundering, but which Coin Center argues is unconstitutional. Is it? In my opinion, yes. Worse, this tax code amendment is an invasion of our privacy that could lead to widespread identity theft. Starting in 2024, U.S. taxpayers who receive over $10,000 in crypto currency payment will be forced to report to the Treasury the social security number and birth date of the sender.

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Richard Paxton

CEO of the Alacer Group. Sharing the latest news in financial crimes and best practices that enable financial institutions to prevent money laundering.

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