I don't even know which option is worse. And I would like to see the report submitted by a dice player with a million bets made. Processing such an array of information is clearly unprofitable for the state - no taxes will compensate for the resources spent on such nonsense. Another evidence that the state is not interested in a successful result - the process that makes them necessary is important for officials.
Well... in 99% of the cases, such information will not be processed by the IRS. The cross-checks and validations will be done only if there is a genuine suspicion that the individual is evading taxes. In other cases, the officials will just tabulate the totals and ignore the detailed transaction list. The same goes with cryptocurrency transactions as well. As far as I know, all the transactions being made with crypto needs to be reported in the tax return (even if it is crypto to crypto transaction). For someone who does day trading in cryptocurrency, this means that the tax return may be a enlarged by a few dozen pages at least.
In my country there is a proverb: "The severity of the laws is compensated by the non-binding nature of their implementation." On the one hand, this is ridiculous, on the other hand, I would not want such a situation to be in the United States. To be honest, I do not understand the very idea of declaring our crypto transactions - after all, we pay taxes on income, and we receive income at the time of cashing property/cryptocurrency. Therefore, until this moment has come, I do not see any sense in such reports.
