The IRS, alongside many other regulators, has been quite active in the cryptocurrency realm over the past few years. Recently, two directors overseeing the agency’s digital assets rulemaking have stepped down, adding to the ongoing narrative of changes within government oversight of digital currencies.
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Deferred Resignations
The Narrative
More than 20,000 IRS employees, under offers made by the Trump administration, have accepted deferred resignation offers. Among them are Raj Mukherjee and Seth Wilks, two directors instrumental in formulating regulations for digital assets.
Why It Matters
Following their acceptance of deferred resignations, both executives, who occupied pivotal roles within the IRS concerning digital asset strategy, are now on paid administrative leave. Sources familiar with the situation have indicated that their departures should not be interpreted as an alteration in the IRS’s approach to cryptocurrency regulations.
Breaking It Down
Seth Wilks served as the executive director for digital asset strategy and development, while Raj Mukherjee held the position of executive director of the digital assets office. Both have joined thousands of others who accepted similar offers, placing them on paid leave until September.
Reports suggest that their resignations come ahead of anticipated widespread layoffs at the IRS, shedding light on the broader implications for regulatory oversight of the cryptocurrency sector.
For a deeper dive into this unfolding story, read more here.
Stories You May Have Missed
- Inside Movement’s Token-Dump Scandal: CoinDesk’s Sam Kessler published an investigation into Movement Labs and the intricacies of their recent agreements with a market maker.
- Fed Joins OCC, FDIC in Withdrawing Crypto Warnings for U.S. Banks: The Federal Reserve has retracted previous guidance advising banks to seek pre-approval for crypto-related activities.
- TRUMP Coin Jumps 70%: News of an exclusive dinner event with Donald Trump for major TRUMP token holders has caused a significant price surge.
- Trump’s Truth Social Mulls Launching Token: The social media platform owned by Trump Media & Technology Group is exploring the launch of a utility token for subscription services.
- Bitcoin-Friendly Poilievre Loses Seat: In a recent Canadian election, Prime Minister Mark Carney’s Liberal Party has emerged victorious, resulting in a change of representation.
DOJ’s Mixers
In developments from the Department of Justice, a joint memo between prosecutors and defense attorneys in the case against the developers of Samourai Wallet suggests a potential pause in proceedings while the DOJ reevaluates its stance on the case. A ruling from a federal judge this week indicated that the U.S. Treasury Department may not be able to sanction Tornado Cash again, marking a significant moment in regulatory discussions regarding crypto mixers.
This Week
Key events slated for the week include a subcommittee hearing by the House Financial Services Committee and significant criminal sentencing related to previous crypto exploits.
Elsewhere:
- (The New York Times) – A deep dive into Donald Trump’s increasing involvement in the crypto space.
- (The Washington Post) – A list of top donors to Trump’s inauguration fund shows significant contributions from crypto entities.
- (Politico) – Insights into Canadian Prime Minister Mark Carney’s views on banking and crypto.
For thoughts or feedback on what topics to cover next week, feel free to contact me at [email protected]. Join the conversation on Telegram. See you next week!
