Oct. 29, 2023
Dear IRS and Treasury Department, I would like to provide feedback on the proposed regulations discussed in the PDF document titled "Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions." I have some concerns regarding the following topics: 1. Privacy: I am worried about the privacy and safety implications of allowing multiple third parties to have access to sensitive financial data and social security numbers. It raises concerns about the potential misuse or mishandling of this information. 2. Confusion: The proposed regulations create reporting requirements for various participants in decentralized finance (DeFi). This could lead to multiple inconsistent reports being generated for the same transaction, causing confusion and potential errors in reporting. 3. Impact on small businesses: Implementing these reporting requirements will impose additional costs on small businesses and start-up protocols. These entities may not have been previously required to track personal identifiable information, and the added expense could hinder their growth and innovation. It may put them at a competitive disadvantage compared to larger players who can absorb these costs more easily. I believe it is essential to prioritize privacy and consider the potential burden on small businesses when implementing these regulations. Finding a balance between regulatory oversight and practicality is crucial to ensuring a fair and sustainable digital asset ecosystem. Thank you for considering my input on these matters.