The so-called dealer rule, laid out by the IRS in a tax reporting proposal has been at occasions known as unconstitutional, unprecedented in scope and an existential risk for the cryptocurrency trade. Certainly, by increasing the definition of a dealer — a well-defined time period within the context of conventional finance, with some analogues within the digital asset trade — to absolutely anything that touches code in crypto, the proposed rule would possible be “overbroad.” The rule has been formally adopted, the IRS is holding back-to-back hearings on the proposal, and has prolonged the general public remark interval — over 120,000 responses have already been filed.
