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April 11 update, 1 h 46: This article has been updated to include more information and information on resolution.
US President Donald Trump has signed a joint resolution of the congress reversing a rule of the Biden Administration era which would have required decentralized financing protocols (DEFI) to report transactions to the Internal Revenue Service.
Provided for the idea of taking effect in 2027, the so-called IRS DEFI broker rule would have widened the existing tax authority requirements to include DEFI platforms, forcing them to disclose the gross product for the sale of crypto, including information concerning the taxpayers involved in transactions.
Trump officially killed the measure by signing the resolution on April 10, marking the first time that a crypto bill was reported, said representative Mike Carey, who supported the bill, in a statement.
“The Defi Broker rule unnecessarily embarked on American innovation, aroused the privacy of everyday Americans, and had to overwhelm the IRS with an overflow of new deposits that it does not have the infrastructure to manage during the tax season,” he said.
Critics of the rule said that it would bring together decentralized platforms with overly expensive rules, hampering innovation in crypto and deffi.
Supporters, like the Democratic representative, Lloyd Doggett, said in March that killing the IRS rule would create an escape that wealthy tax cheaters would exploit.
The resolution to kill the rule had quickly made its way through the congress and was transferred from the chamber and means committee of the Chamber on February 25, the chamber which passed it on March 11.
The Senate adopted the resolution on March 26. He had previously adopted his own version of the resolution in early March, but the Chamber made his own rules because of the constitutional rules on the origin of budgetary measures.
Trump had to sign the bill, while AI of the White House and Tsar Crypto David Sacks declared in March that the president had argued the death of the measurement
The industry “can breathe again” with the Rule IRS repealed
The CEO of the crypto Advocacy Group Blockchain Association, Kristin Smith, said in a press release of April 10 that “the innovators, manufacturers and developers of the industry could breathe again”, now the resolution has passed.
“This rule promised the end of the United States cryptography industry; it was a hammer for the engine of American innovation,” she added.
The Lobbies group brought a complaint in December against the IRS, the Treasury Secretary and the Treasury, Janet Yellen, to repeal the IRS rule, claiming that it was illegal and an “unconstitutional overtaking.”
The Trump administration adopted a friendly attitude towards the crypto and worked to cut the Securities and Exchange Commission, which has regained its hard position to Crypto forged under former president Gary Gensler.
The regulator has rejected a number of application measures and probes against cryptographic companies it has launched under the Biden administration and began a series of industry consultations on the way it should regulate the crypto.