Hedera (hbar) 
In a recent press release on Jan. 16, the Internal Revenue Service (IRS) and the U.S. Treasury Department announced that American businesses are not obligated to report their cryptocurrency receipts in the same manner as cash receipts. This exception will remain in place until new regulations are issued by the Treasury and IRS.
The IRS clarified that this announcement does not affect the existing rules for reporting cash receipts under the Infrastructure Investment and Jobs Act. Cash transactions exceeding $10,000 received in the course of a trade or business still need to be reported on Form 8300 within 15 days of receipt.
Proposed Regulations for Crypto Reporting
The IRS introduced proposed regulations in late September 2023 focusing on information reporting requirements for specific cryptocurrency sales and exchanges. The aim of these regulations is to expand current reporting obligations to cover crypto transactions.
Under the proposed regulations, brokers will have new responsibilities that involve submitting information returns and providing payee statements for designated crypto dispositions on behalf of their customers. This will require the introduction of a new IRS form.
These regulations are expected to come into effect in 2026, applicable to transactions in 2025. Specific provisions will be enforced in 2027 for transactions occurring in 2026.
Tennessee Senate Bill on CBDCs
A Tennessee Senator has introduced a bill that seeks to redefine the term “money” within the state’s Uniform Commercial Code (UCC) to explicitly exclude central bank digital currencies (CBDCs) from the definition of money.
This legislative move is part of a larger trend among states, including Indiana and Florida, to examine the role of government-issued digital currencies in their economies. Governor Ron DeSantis of Florida has expressed concerns about CBDCs, particularly regarding individual privacy and government overreach.
CBDCs differ from decentralized cryptocurrencies like Bitcoin (BTC) as they are centralized and government-backed. Advocates argue that CBDCs offer increased security, financial inclusion, and efficiency in transactions. However, critics raise issues about privacy implications and potential government surveillance due to the traceability of digital transactions.
The Tennessee bill raises questions about the relationship between state and federal law, given the U.S. Constitution’s supremacy clause. This tension between state and federal legislation has been seen in past instances, such as California’s legalization of medical marijuana in 1996 despite federal prohibition.
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