According to a report by Cointelegraph, the U.S. Senate passed a resolution on Tuesday to repeal the requirement for DeFi (Decentralized Finance) 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, will be sent to President Donald Trump for signing. 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The regulation that may be repealed expands the current IRS reporting requirements to cover decentralized exchanges and mandates that brokers disclose the total proceeds from cryptocurrency sales, including taxpayer information involved in the transactions.
Eli Cohen, Chief Legal Officer of the real asset tokenization platform Centrifuge, stated in a statement to Cointelegraph that this rule has never made “any sense” and is “impractical in practice.” He added that since the rule has never been enforced, all reporting requirements remain unchanged, “this simply means that taxpayers need to report directly to the IRS, rather than having that obligation undertaken 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 this rule could have severely harmed the U.S. DeFi industry.
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 that the pro-cryptocurrency stance has finally been translated into action. She stated that this is a good omen for the future establishment and passage of legislation regarding stablecoins and market structure.
