tl;dr
The US Senate has repealed a rule proposed by the IRS that required decentralized finance platforms to report customer information for tax purposes starting in 2027. The bipartisan vote, led by Senator Ted Cruz, argued that DeFi platforms are not traditional brokers and would face high compliance co...
The US Senate has repealed a rule proposed by the IRS that required decentralized finance platforms to report customer information for tax purposes starting in 2027. The bipartisan vote, led by Senator Ted Cruz, argued that DeFi platforms are not traditional brokers and would face high compliance costs. The repeal passed with a vote of 70 to 27, with every vote to keep the rule from a Democrat. The move has sparked bipartisan debate on the impact of encouraging the digital asset industry to move into the shadows. Some in the crypto industry see this as a powerful statement of the importance of crypto, while others express concerns about potential negative impacts. In the crypto market, there has been a minor recovery, with Bitcoin reclaiming $88,000 and Ethereum making a minor gain but remaining at a low level. Additionally, DeFi total value locked had a recent resurgence with the crypto market rally but has since retreated 33% to $102 billion, impacting the wider crypto markets. The repeal of the rule has been met with mixed reactions, as it has significant implications for the digital asset industry, tax compliance, and potential impacts on financial crimes. This development, alongside other pro-crypto pivots in the US, indicates a shifting regulatory landscape for cryptocurrencies. The crypto markets have seen a minor recovery over the past 24 hours, with total capitalization adding 2% to reach $2.97 trillion. Bitcoin reclaimed $88,000 before a minor pullback, while Ethereum made a minor 4% gain but remained at its lowest level for over a year, just over $2,150. Other cryptocurrencies, including XRP, Cardano (ADA), Hedera (HBAR), and Bitcoin Cash (BCH), also experienced larger gains. This move by the US Senate and its impact on the crypto market underscores the evolving legislative environment in which digital assets operate. It highlights the need for careful consideration of regulations to balance industry growth, compliance, and potential risks.