According to a report from Cointelegraph, the U.S. Senate passed a resolution on Tuesday to abolish 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, White House Artificial Intelligence and Cryptocurrency Czar, has indicated that Trump supports the repeal of this rule.
The regulation that may be abolished expanded the current IRS reporting requirements to include decentralized exchanges and mandated brokers to disclose the total gains from cryptocurrency sales, including information about taxpayers involved in the transactions.
Eli Cohen, General Counsel 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 gone into effect, all reporting requirements remain unchanged, meaning “taxpayers will need to report directly to the IRS, rather than having intermediaries assume that obligation.”
Kristin Smith, CEO of the U.S. cryptocurrency advocacy organization The Blockchain Association, remarked that the Senate’s latest resolution marks an important day for DeFi and the U.S. cryptocurrency industry. She noted that the rule could have severely impacted the DeFi sector in the United States.
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 toward cryptocurrency into action. She stated that this is a positive sign for the future formulation and passage of legislation regarding stablecoins and market structure.
Ethereum’s Two Testnets Pectra Encounter Obstacles, Delaying Mainnet Upgrade Progress
According to a report by CoinDesk, Ethereum developers did not finalize the timeline for t…