US President Donald Trump signed a resolution repealing a controversial rule of the Internal Revenue Service (IRS) which would have imposed strict requirements on the data on cryptocurrency brokers, the block reported on Thursday.
The resolution, which canceled a rule finalized during the previous administration of Biden, was defended by the Republican legislators, including Senator Ted Cruz and representative Mike Carey. The White House had previously characterized the measurement of the IRS as a “midnight regulations”, suggesting that it had been precipitated in the last days of previous administration.
The representative Carey, who attended the signature ceremony on Thursday, praised the repeal as the first bill linked to the crypto to be reported: “By repealing this patiently patient, President Trump and the Congress gave the IRS the opportunity to return his concentration on the duties and obligations that he already owes to American taxpayers instead of creating a new series of bureaucratic handus”.
The IRS rule now canceled would have forced “childcare brokers” to collect and report user data at the tax agency. This definition, as clarified by the Treasury Department, has extended to “frontal service providers” which interact directly with customers, effectively targeting entities performing websites that give access to decentralized protocols.
Critics of the rule argued that it would have imposed an excessive burden on the booming decentralized finance sector (DEFI), forcing participants to operate as traditional securities brokers. This would have included the collection and declaration of user negotiation data and the publication of income declarations in form 1099, a decision which aroused strong criticism from the defenders of the industry who considered it a stifling innovation.
