Overview
As the U.S. Senate commenced deliberations to potentially eliminate an IRS regulation affecting decentralized finance (DeFi), there was palpable encouragement from the White House.
Key Points:
- The Biden administration appears poised to endorse Congress’s efforts to rescind an IRS rule imposing extensive disclosure requirements on DeFi projects, according to an announcement by President Donald Trump’s advisors.
- A resolution introduced by Senator Ted Cruz gained traction, with support from 70 senators, indicating a bipartite consensus as discussions progressed.
Senate Discussion on IRS Rule
As the Senate takes steps towards a vote regarding an IRS rule on crypto, the White House shows strong support.
The White House might authorize President Trump to sign a congressional resolution that would retract an IRS rule established shortly before he took office. Trump’s advisors suggest that this regulation, framed as a ‘midnight regulation’ from the previous administration, unduly burdens DeFi in America.
“The rule inappropriately requires specific DeFi participants to report gross proceeds from cryptocurrency sales and other digital asset transactions, including sensitive taxpayer data,” the statement read.
In a remarkably productive session, the Senate saw numerous Democrats aligning with Republicans on Cruz’s resolution, suggesting a division within party lines regarding this regulation’s suitability. The initial motion to initiate Senate discussions received more than two-thirds support, with a count of 70-28.
“In a bipartisan, supermajority vote, the Senate is ready to debate this crucial resolution,” remarked Jennifer Rosenthal, representing the DeFi Education Fund.
For this resolution to be signed off by Trump, it must traverse both the Senate and the House of Representatives, where it previously gained committee approval. Similar bipartisan dynamics reflect the significant importance of this legislative move as it aims to streamline regulatory approaches towards the evolving crypto industry.
The ongoing proceedings signal a pivotal week for cryptocurrency regulation, complemented by President Trump’s expressions of support for innovation in the crypto space and scheduled interactions with industry leaders in Washington.
