Main to remember
- The White House supports a resolution of the congress to repeal an IRS rule with an impact on the DEFI platforms.
- The rule obliged participants to DEFI to report detailed information on transactions and taxpayers, causing confidentiality problems.
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The White House expressed a strong support for a joint resolution to cancel an IRS rule which requires in -depth disclosure requirements to DEFI projects, Trump’s cryptography announced on Tuesday.
The White House is happy to announce its support for the arc introduced by @Sentedcruz And @Repmikecarey To cancel the so-called DEFI broker rule, an 11th hour attack against the cryptographic community by the Biden administration. pic.twitter.com/t7hxasb4ac
– David Sacks (@ davidsacks47) March 4, 2025
The resolution, known as the SJ res. 3 was presented by Senator Ted Cruz and representative Mike Carey on January 21. It aims to repeal “raw reports of IRS by brokers who regularly provide services carrying out sales of digital assets”.
The rule, published last December, widens the definition of “broker” to include software that processs DEFI transactions. Under this definition, DEFI projects should point out the gross products of crypto sales and collect taxpayers data, including identities and transaction stories.
The rule encountered strong opposition from the cryptographic industry. The blockchain association criticized him as a misinterpretation of DEFI technology and a threat to innovation.
The measure of Senator Cruz aims to prevent the implementation of heavy information report requirements on DEFI participants, to respond to concerns concerning confidentiality and sharing of personal information from taxpayers, as well as support for innovation in the American digital asset industry.
“This rule, published as midnight regulations in the last days of the previous administration, would stifle American innovation and would raise confidentiality problems concerning the sharing of personal information from taxpayers, while imposing an unprecedented burden on American DEFI companies”, according to the White House declaration.
The White House indicated that if the congress adopts the resolution, the president’s main advisers would strongly recommend signing it.
The American Senate should vote on the revocation of the IRS challenge rules
The US Senate is expected to vote this week to cancel two Biden era regulations related to digital assets, a person familiar with the Senate planning on Monday.
The first is the rule of the IRS which widens the definition of the “broker” to include the DEFI projects.
The second is a CFPB rule that would subject large technological companies dealing with high volumes of consumer payments via digital portfolios and payment applications to stricter regulation similar to large American banks.
The two resolutions are presented under the Congressional Review Act, which allows the Congress to cancel the recent federal regulations.
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