Donald Trump May End Controversial IRS DeFi Tax Rule

Crypto Advocates Praise Repeal
The Senate voted 70-28 to repeal the rule, following a similar decision by the House earlier this month.

The rule had faced backlash from the crypto community, which argued that DeFi platforms should not be held to the same reporting standards as traditional financial entities.

Source: United States Senate

Several crypto groups, like the Blockchain Association, celebrated the repeal, calling it a victory for innovation. Kristin Smith, CEO of the Blockchain Association, thanked lawmakers for their support and eagerly awaits Trump’s signature to eliminate the rule.

Critics Warn of Risks
While the aforementioned advocates praised the decision, many opponents, such as Representative Lloyd Doggett, warned that repealing the rule could allow for tax evasion and illicit activities, claiming it would have closed loopholes for wealthy investors.
In any case, with Trump expected to approve the repeal, the rule will soon be removed, offering relief to DeFi platforms that had feared the IRS reporting requirements.