Two of the IRS’s top crypto executives — Seth Wilks and Raj Mukherjee — have been unexpectedly removed as part of a sweeping reform led by DOGE (Department of Government Efficiency), a new initiative under President Donald Trump aimed at drastically reducing government bureaucracy.

🏛️ Trump Rewrites the Crypto Rulebook

Wilks and Mukherjee had only joined the IRS in February 2024, coming from the private crypto sector — Seth from TaxBit, and Raj from Binance.US and ConsenSys. Their primary roles included:

🔹 launching the new crypto income reporting form 1099-DA

🔹 crafting regulations for DeFi brokers

🔹 strengthening collaboration between the IRS and the crypto industry

Their dismissal came in the form of “deferred resignations” — meaning they’re technically still employed but have been placed on paid leave until September.

✂️ 20,000 IRS Employees Leaving, Including Leadership

This move is part of a broader plan by Trump’s administration to cut over 20,000 IRS jobs, mostly from hires made under the Biden administration. Trump’s team argues the IRS had become bloated and inefficient — and now aims to streamline operations.

A Treasury Department spokesperson stated:

“The goal is a leaner, more efficient government that delivers enforcement, privacy, and service the American people deserve.”

🧾 Crypto Policy Is Being Rewritten

One of the last projects Wilks and Mukherjee worked on was a new rule targeting DeFi platforms, created under Biden's administration. However, this data collection rule was struck down earlier this year through a Congressional Review Act signed by Trump.

It became clear this wasn’t just about job cuts — it marked a dramatic shift in how the federal government approaches crypto regulation. The departure of these two officials symbolizes the end of a regulatory era.

🚪 It’s Not Just the Crypto Officials Leaving

The shake-up goes beyond crypto. Melanie Krause, the IRS’s acting commissioner, also resigned — reportedly due to internal unrest after the IRS agreed to share taxpayer data with immigration authorities, a policy change driven by the Trump administration. This broke a long-standing IRS tradition of strict data privacy, sparking backlash and a wave of resignations at high levels.

🧩 Summary:

Trump’s DOGE initiative is triggering seismic changes across the U.S. tax system. With massive departures, regulation rollbacks, and a shift toward less oversight, the message is clear: Trump is betting on smaller government and reduced crypto regulation — but what this means for the broader crypto market remains to be seen.

#IRS , #DonaldTrump , #CryptoRegulation , #DOGE , #ElonMusk

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