United States senators Elizabeth Warren and Bernie Sanders, along with their colleagues Bob Casey and Richard Blumenthal, are calling for urgent measures to tackle the burgeoning issue of crypto tax gap. The lawmakers assert that these tax evaders are depleting billions from the government coffers.

They emphasize the need for prompt action on new tax regulations to prevent a potential $1.5 billion loss in tax revenue for the 2024 financial year. This was in an Aug. 1 letter addressed to the Internal Revenue Service (IRS) and the Treasury,

Furthermore, the senators contend that a staggering “$50 billion crypto tax gap” must be addressed without delay.

The Cry for Action

The senators refer to the tax laws laid out in the $1.2 trillion infrastructure bill passed in August 2021, which aimed to enhance tax reporting requirements for businesses functioning as crypto brokers.

However, despite the bill’s enactment, the Treasury and the IRS are yet to release the corresponding tax rules. The deadline for implementation is Dec. 31, but the lawmakers are pushing for accelerated action to plug the loopholes and mitigate the loss.

A screenshot of a part of the 4-paged letter written by Elizabeth Warren and Bernie Sanders

Elizabeth Warren’s Vocal Criticism of the Cryptocurrency Industry

Elizabeth Warren, known for her outspoken criticism of the cryptocurrency industry, has taken a hardline stance against it. Additionally, she formed an “anti-crypto army” as the central theme of her Senate re-election campaign.

On the other hand, Bernie Sanders, while less publicly vocal about crypto, has joined forces with Warren in signing several letters advocating for stricter regulations in the space.

Grayscale Investments Poll: Public Opinion on Crypto

A recent poll conducted by Grayscale Investments revealed an interesting divide on the issue. While 59% of Democrats and 51% of Republicans consider cryptocurrency as the future of finance, it indicates that Warren’s strong stance might not necessarily be a vote-winning strategy for the majority of the population.

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