U.S. Senate Approves Resolution to Eliminate IRS Crypto Rule
The U.S. Senate has successfully cleared a major hurdle in the initiative to abolish the IRS's controversial crypto broker rule, with the decision now pending in the House of Representatives.
Summary
The U.S. Senate voted 70-27 to approve a resolution aimed at abolishing an IRS rule affecting decentralized finance (DeFi), and the proposal needs similar approval from the House of Representatives before being signed into law by President Trump.
What Happened?
The significant support from various Democrats led to a major Senate victory to eliminate a controversial Biden administration tax rule within the crypto space.
The Senate’s strong bipartisan approval demonstrated widespread discontent regarding the IRS proposals concerning decentralized finance, which industry advocates claimed were overly burdensome and impractical.
The resolution now moves to the House for further consideration. Cruz, who sponsored the resolution, emphasized that the IRS’s attempts at regulation reflected a misplaced understanding of how the evolving DeFi landscape operates.
Senator Cruz’s Remarks
“DeFi is a microcosm of the crypto revolution,” said Senator Cruz, emphasizing the need to strike down the rule considered a federal overreach. He argued, “Their software never holds or controls user funds.”
He noted the political trends revealing younger legislators’ support for crypto regulations, contrasting with those of older members.
Next Steps
If both chambers of Congress approve the resolution, the IRS will not only be prevented from enforcing the current rule but also restricted from instating similar regulations in the future. The DeFi Education Fund praised this step as a milestone in the regulatory landscape for digital assets in the United States.
