Decentralized Finance: A New Era of Regulation?
In a significant move for the decentralized finance (DeFi) sector, the United States Senate has repealed the IRS “broker” rule. This decision may relieve DeFi protocols from reporting to American tax authorities, marking a potential turning point for the industry.
Anticipated Policy Shift: A Pro-DeFi Resolution?
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Market analysts predict that former President Donald Trump may soon endorse a resolution that would reverse the DeFi reporting requirements instituted during the Biden administration. Such a move is anticipated to foster growth within the DeFi ecosystem, as many in the crypto community have criticized the existing policy as impractical.
According to industry experts, the anticipated resolution from Trump could signal a broader shift in the US government’s approach to decentralized finance, generating enthusiasm among traders and investors alike.
Senate’s Overwhelming Support for Change
The US Senate recently voted overwhelmingly in favor of repealing the IRS DeFi broker rule, with a 70-28 majority. This landmark decision removes the obligation for DeFi platforms to report to the IRS, a requirement that many argued hindered innovation and privacy.
Celebration Among Crypto Advocates
The DeFi Education Fund applauded the Senate’s decision, emphasizing the bipartisan support that led to this victory. The organization highlighted the efforts of Senator Ted Cruz and Representative Mike Carey for their leadership in advocating for the repeal.
With the legislative process now complete, the resolution awaits President Trump’s signature. If signed, it would officially nullify the IRS’s previous rule, ensuring that DeFi innovators can operate without the constraints of the previous regulations.
Mixed Reactions from Lawmakers
While the decision has been welcomed by many in the crypto community, it has not been without its critics. Democratic Representative Lloyd Doggett expressed concerns that the repeal could facilitate tax evasion and money laundering, citing potential exploitation by affluent individuals and criminal networks.
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