{"id":376550,"date":"2025-02-28T11:56:48","date_gmt":"2025-02-28T06:26:48","guid":{"rendered":"https:\/\/dripp.zone\/news\/congress-pushes-back-against-irs-defi-tax-rule-all-you-need-to-know-crypto-news\/"},"modified":"2025-02-28T12:00:32","modified_gmt":"2025-02-28T06:30:32","slug":"congress-pushes-back-against-irs-defi-tax-rule-all-you-need-to-know-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/congress-pushes-back-against-irs-defi-tax-rule-all-you-need-to-know-crypto-news\/","title":{"rendered":"Congress pushes back against IRS DeFi tax rule &#8211; All you need to know &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<ul>\n<li><em>U.S lawmakers are pushing to repeal the DeFi broker rule, citing excessive government intervention<\/em><\/li>\n<li><em>Republican-led shift may ease crypto regulations as enforcement priorities move towards immigration<\/em><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">U.S lawmakers are pushing back against the controversial \u201cDeFi broker rule,\u201d which mandates decentralized exchanges and digital asset brokers to report transaction details to the IRS. t<\/span><span style=\"font-weight: 400;\">On 26 February, the House Ways and Means Committee <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/waysandmeans.house.gov\/wp-content\/uploads\/2025\/02\/H.J.Res_.-25-Final-Tally.pdf\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">voted<\/a> 26-16 to advance a resolution seeking to repeal the rule before its scheduled implementation in 2027.<\/span><\/p>\n<div id=\"attachment_470980\" style=\"width: 950px\" class=\"wp-caption aligncenter\"><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/02\/Ways-and-Means-Committee.webp\" data-wpel-link=\"internal\"><\/a><\/p>\n<p id=\"caption-attachment-470980\" class=\"wp-caption-text\">Source: Ways and Means Committee\/X<\/p>\n<\/div>\n<p><span style=\"font-weight: 400;\">Originally <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/public-inspection.federalregister.gov\/2024-30496.pdf\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">approved<\/a> by the IRS on 5 December, the regulation aims to expand reporting requirements, compelling brokers to disclose cryptocurrency sale proceeds and taxpayer details. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, critics argue that enforcing such measures on decentralized platforms is impractical and represents excessive government intervention.<\/span><\/p>\n<h2>Why are lawmakers criticizing?<\/h2>\n<p><span style=\"font-weight: 400;\">House Ways and Means Chair Jason Smith (R-MO) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/waysandmeans.house.gov\/2025\/02\/26\/chairman-smith\/\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">criticized<\/a> the IRS tax rule, stating that it aims to \u201cunnecessarily regulate the providers of digital wallets.\u201d <\/span><\/p>\n<p><span style=\"font-weight: 400;\">He argued that the regulation would place an undue burden on U.S.-based firms, while giving an advantage to foreign entities that are not subject to the same reporting requirements. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Echoing these concerns, Miller Whitehouse-Levine, CEO of the DeFi Education Fund, <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/millercwl\/status\/1894812837186544078\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">called<\/a> the rule an \u201cunlawful and unconstitutional overreach.\u201d He emphasized on the need for its repeal to \u201cprotect Americans\u2019 freedom of choice in how they transact.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He said,\u00a0<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400;\">\u201cWe urge all members \u2014and all who want to establish the United States as a hub for financial innovation\u2014to act swiftly to uphold Congress\u2019s original intent by supporting the motion to overturn this misguided rule.\u201d<\/span><\/p>\n<\/blockquote>\n<h2>How is this move helpful for the U.S?<\/h2>\n<p><span style=\"font-weight: 400;\">Needless to say, the effort to repeal the DeFi broker rule reflects a broader transformation in U.S crypto regulations, driven by the Republican Party\u2019s control of both the Senate and the House. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">With a surge of pro-crypto lawmakers in Congress, industry leaders speculate that the U.S could be on the path to becoming one of the most crypto-friendly administrations in history. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This shift is already evident, as the SEC has withdrawn multiple enforcement actions against crypto firms throughout February \u2013 Sign of a more lenient regulatory approach.<\/span><\/p>\n<h2>Trump\u2019s pro-crypto moves<\/h2>\n<p>Additionally, at the World Economic Forum in Davos, Trump also <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/trumps-cryptocurrency-policy-sparks-hope-debanked-crypto-firms-fight-back\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">accused<\/a> major banks, including JPMorgan Chase and Bank of America, of engaging in \u201cpolitically driven de-banking.\u201d At the time, he claimed that they were excluding conservatives under regulatory pressure.<\/p>\n<p>While the banks denied any misconduct and Trump did not provide concrete evidence, his allegations nonetheless spurred a Republican-led investigation into potential financial discrimination.<\/p>\n<p>Therefore, as the Trump administration reshapes its priorities, its impact on crypto regulations remains uncertain, leaving the industry anticipating potential regulatory relief.<\/p>\n<div class=\"post-nav\">\n<div class=\"next-blog\">\n\t\t\t\t\t\t\t\t\t\t\tNext: <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/ethereum-signs-of-recovery-and-future-outlook\/\" rel=\"prev\" data-wpel-link=\"internal\">Ethereum: Net inflows hit 88K \u2013 Does this indicate ETH\u2019s market bottom?<\/a>\t\t\t\t\t\t\t\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>U.S lawmakers are pushing to repeal the DeFi broker rule, citing excessive government intervention Republican-led shift may ease crypto regulations as enforcement priorities move towards immigration U.S lawmakers are pushing back against the controversial \u201cDeFi broker rule,\u201d which mandates decentralized exchanges and digital asset brokers to report transaction details to the IRS. tOn 26 February, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":376551,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-376550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=376550"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376550\/revisions"}],"predecessor-version":[{"id":376552,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376550\/revisions\/376552"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/376551"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=376550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=376550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=376550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}