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The IRS Rule Gets Axed
President Donald Trump has officially signed a bill that kills the controversial IRS DeFi broker rule. This move is being hailed as a huge win for the cryptocurrency world. The rule, which was introduced during the Biden administration, would have classified decentralized finance (DeFi) platforms as brokers, forcing them to report user transaction data to the IRS.
The problem? DeFi platforms operate without traditional intermediaries, and the information required for such reporting simply isn’t available. Critics argued that the rule was not only unworkable but also damaging to the growth of DeFi.
Congress Takes Action
The repeal of the rule was achieved through the Congressional Review Act, with a vote of 292-132 in the House and 70-27 in the Senate. This marked a rare bipartisan win in the crypto space.
Trump’s signature on the bill is a significant move for crypto regulation. As a self-proclaimed “crypto president,” Trump has aligned himself with the industry’s push for less restrictive and more innovation-friendly regulation.
A Win for Innovation
Industry advocates see the repeal as a positive step forward, helping to eliminate unnecessary regulatory burdens on DeFi platforms. This is expected to foster more innovation within the sector, with clearer guidelines and fewer barriers to growth.
This victory marks a turning point in the ongoing battle for crypto-friendly regulation in the United States.
