The House of Representatives
DEFI systems, unlike traditional finance, do not use intermediaries such as banks, but rather operate between peers using intelligent contracts, which are self-executive lines of computer code which automatically apply the rules and conditions of an agreement between two or more parties, stored on a blockchain, a type of public digital register. The previous administration
In general, the rule required that decentralized financing platforms indicate detailed information on customers at IRS, from the tax year 2027. Indeed, the rule would require the brokers to file a 1099 form and to be subject to the same report rules as brokers for securities and operators for negotiating digital assets. The rule was designed to improve tax compliance and create parity with centralized cryptography exchanges and stock brokerage houses. Those who oppose the rule, however, declared that there were too many differences between the DEFI brokers and the traditional securities brokers for the rule to be practical – it is not centralized, do not collect the information necessary to implement this rule and do not act as a real third party intermediary as more traditional securities brokers. They warned that the rule would have major negative consequences for the cryptography sector.
On December 27, 2024, the Treasury and the IRS
Legislators, mainly Republicans, have opposed not only to the rule itself, but also to its 11th hour emission.
“Under President Biden, the IRS exchanged the intention of the congress for a mandate with a political motivation,” said the chairman of the House and Means committee, Jason Smith, R-Missouri, in a statement. “The Biden administration did not hide its opposition to digital assets and the leadership of America in this booming industry. Bureaucrats armed all the tools in the toolbox, including the finalization of this 11th hour rule, paralyzing the digital asset industry and threatening American leadership and innovation in the process. quite. “”
The joint resolution effectively repeals the rule subject by the Treasury concerning “the gross reports of brokers which regularly provide services carrying out sales of digital assets”. It also opens the way to the current administration to apply its own rules.
The news comes after another major announcement linked to the crypto: the
The stock of American digital assets, on the other hand, will include digital assets other than bitcoin belonging to the Ministry of the Treasury which were confiscated in the confiscation procedures for criminal or civil assets.