Cryptocurrency Policy Upended by IRS Resignations
Cryptocurrency policy within the IRS has reached a turning point. On May 2, 2025, two senior crypto leads, Seth Wilks and Raj Mukherjee, left the agency. Their resignations were under the Trump administration’s voluntary buyout program, dubbed the “DOGE deal”—a reference to “Donald’s Ongoing Government Efficiency.”
Wilks and Mukherjee were hired in early 2024 to modernise the IRS’s crypto tax strategies. Both had deep roots in the crypto industry Wilks from TaxBit, Mukherjee from ConsenSys and Binance.US. They played vital roles in drafting new reporting rules and designing the 1099-DA form for digital assets.
Their resignations, although voluntary, are a big loss. Both are on paid leave as of May 2025 and officially resigning by September. Their departure leaves a leadership vacuum at a time when cryptocurrency policy must be clarified.
Cryptocurrency Policy Affected by DOGE Initiative
DOGE initiative is not only about crypto. More than 20,000 IRS employees are said to have accepted offer of deferred resignations. It is part of a larger federal cost-cutting initiative. Still, the departure of crypto experts such as Wilks and Mukherjee sounds alarms throughout the digital asset world.
These two executives provided guidance in understanding DeFi complexities as well as real-world crypto taxation expertise. What they accomplished plugged the knowledge gap between new crypto platforms and mainstream tax enforcement. Losing them will hold up regulatory progress.
Though technically still employed, their impact is done. Their departures indicate cryptocurrency policy could take a back seat during the Trump administration’s current efforts at streamlining.
The Policy Faces Regulatory Uncertainty
The reversal of the DeFi broker reporting rule early in 2025 created more volatility. Originally finalized during Biden’s administration, the rule was repealed under the Congressional Review Act and signed into law by Trump. The change represents a more lax approach to digital asset regulation.
With Wilks and Mukherjee departed, the IRS’s crypto efforts stand to stall. The 1099-DA form and conformity guidance might be delayed. That would confuse investors, exchanges, and tax professionals attempting to comply with the law.
Transition periods always introduce instability. But combined with leadership departures, cryptocurrency policy could be on the cusp of uncertainty.
Cryptocurrency Policy’s Future Amid Downsizing
The en masse resignations are not unique. They’re part of a bigger trend that hits regulatory bodies. If major digital asset offices are compromised department-wide, cryptocurrency policy enforcement can grind to a halt across the board.
The crypto sector now waits for the IRS to make new leadership announcements. But it’s not easy to find talent with extensive crypto expertise. In the meantime, the IRS might be less concerned with innovation and more concerned with mere tax collection.
Cryptocurrency regulation, as much as the funds it oversees, is in motion. Under such circumstances, both regulators and players in the markets need to remain vigilant, agile, and open to abrupt shift.
