In a surprising shake-up within the Internal Revenue Service, Seth Wilks and Raj Mukherjee, two pivotal figures steering the IRS’s crypto initiatives, have exited the agency. This development comes after they accepted deferred resignation offers, a move reportedly orchestrated by the Department of Government Efficiency. Although technically still on the IRS payroll, both directors are now on paid administrative leave, as confirmed by sources close to the matter.
Crypto’s Regulatory Architects Depart
Wilks and Mukherjee brought significant experience from the crypto sphere to the IRS, joining in February 2024. Wilks, formerly a vice president at TaxBit, and Mukherjee, who held leadership roles in tax at ConsenSys and Binance.US, were instrumental in crafting the IRS’s approach to cryptocurrency taxation. Their roles were crucial in developing the updated 1099-DA tax form, which aimed to streamline tax filing for digital asset transactions in the U.S.
The duo’s exit seems to reflect broader administrative changes under President Donald Trump’s leadership, which has seen DOGE—a program aimed at reorganization—offering deferred resignations to federal employees. The rationale behind these resignations remains somewhat opaque, with sources indicating they precede anticipated staffing reductions within the IRS. This aligns with recent developments in crypto legislation, as highlighted by Trump’s Crypto Sherpa Bo Hines, who noted that crypto legislation is on target for quick completion.
An Uncertain Regulatory Future
Wilks and Mukherjee were at the helm of efforts to draft regulations for the burgeoning crypto industry, including the now-overturned rule mandating data collection by decentralized finance (DeFi) brokers. This rule, finalized as the Biden administration drew to a close, was subsequently nullified by Congress earlier this year, illustrating the ongoing tug-of-war over crypto regulation. In a related legal battle, Coinbase’s involvement in a Supreme Court case defending user data from IRS scrutiny underscores the complexities of crypto regulation.
Their departure raises questions about the continuity and future direction of the IRS’s digital asset strategy. The IRS had been ramping up its efforts to enforce compliance and reporting standards in a rapidly evolving landscape, a task that will now fall to new leadership amid a backdrop of political and economic shifts.
A Wider Trend?
The deferred resignation program has not been confined to the IRS alone. The New York Times recently reported that over 20,000 IRS employees have opted into this program, which places them on administrative leave through September. This mass exodus could signal a significant reshaping of the agency’s workforce and priorities.
For the cryptocurrency industry, the departure of Wilks and Mukherjee injects a degree of uncertainty. These changes might slow down the IRS’s progress in establishing a firm regulatory framework, a prospect that could have mixed implications for crypto entities and investors striving for clarity. As the industry continues to mature, the absence of seasoned experts like Wilks and Mukherjee might leave a gap in the IRS’s ability to effectively navigate these uncharted waters.
Looking ahead, the IRS faces the challenge of balancing innovative regulation with practical enforcement, a task made more complex by the shifting personnel landscape. Whether the agency can swiftly adapt and maintain momentum remains to be seen. As crypto markets and regulations evolve, these developments at the IRS underscore an ongoing saga of adaptation and transformation within the federal approach to digital assets.
Source
This article is based on: IRS’ Crypto Leads Are Leaving the Agency After Accepting DOGE Deals
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
