Senate Poised to Repeal IRS Rule Impacting DeFi đ¨: A Win for Crypto Innovation ?đđĽ
Good news finally seems to be coming, and itâs desperately needed. The U.S. Senate is set to vote on a resolution that could overturn an IRS rule many believe threatens the core of decentralized finance (DeFi). The rule, finalized in December 2024, expands the definition of âbrokerâ to include DeFi platforms, forcing them into tax reporting requirements that critics argue are unrealistic and damaging to innovation.
The Rule in Question
The IRS mandates DeFi platforms report transaction data like traditional brokers. The catch? DeFi is built on anonymityâthese platforms donât collect user data. Enforcing this rule would be like asking cash to report its previous owners.
Legislative Pushback
In late February, the House Ways and Means Committee advanced a resolution to repeal the rule, calling it a bureaucratic overreach. The Senate, led by Senator Ted Cruz, will now decide whether to scrap it. A repeal would be a major win for crypto, removing unnecessary reporting burdens and allowing DeFi to thrive in the U.S.
Whatâs Next?
If the Senate votes in favor, DeFi platforms escape a major regulatory headache. If not, the fight continues, and the industry braces for further battles over compliance and innovation.
Cheers, and Trade Wisely!
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