According to a report by Cointelegraph, the U.S. Senate passed a resolution on Tuesday to repeal the requirement for decentralized finance (DeFi) protocols to report transaction information to the Internal Revenue Service (IRS). The resolution will be submitted to the House of Representatives for a vote, and if passed, it will be sent to President Donald Trump for signature. David Sacks, the White House’s artificial intelligence and cryptocurrency czar, has stated that Trump supports the repeal of this rule.
The regulation that may be repealed expanded the current IRS reporting requirements to cover decentralized exchanges and mandated brokers to disclose the total revenue from cryptocurrency sales, including taxpayer information related to the transactions.
Eli Cohen, Chief Legal Officer of the real asset tokenization platform Centrifuge, stated in a message to Cointelegraph that this rule has never made “any sense” and is “practically unfeasible.” He added that since the rule has never gone into effect, all reporting requirements remain unchanged, noting that “this only means that taxpayers need to report directly to the IRS, rather than having the obligation taken on by intermediaries.”
Kristin Smith, CEO of the U.S. cryptocurrency advocacy group The Blockchain Association, remarked that the Senate’s recent resolution marks an important day for DeFi and the U.S. cryptocurrency industry. She further noted that the rule could have severely impacted the U.S. DeFi sector.
Additionally, Smith believes that this Congress is the most supportive of cryptocurrency in U.S. history, and the passage of this resolution in the Senate signifies a transformation of the supportive attitude towards cryptocurrency into action. She stated that this is a positive sign for the future formulation and passage of legislation regarding stablecoins and market structure.
