The American legislators of the House of Representatives have advanced a resolution to repeal the “Court of Court” rule, forcing the brokers to report digital asset transactions to the Internal Revenue Service.
Planned in 2027, the IRS regulation approved on December 5 would expand the existing declaration requirements to include decentralized scholarships and oblige brokers to disclose the gross product for the sale of cryptocurrencies, including information concerning the taxpayers involved in transactions.
During its marking of the committee of February 26, House Ways and Means Committee, a key group of the Chamber of American Representatives who deal with financial issues, voted from 26 to 16 to adopt the resolution.
Source: Tracks and Meaning Committee
In a statement, Miller Whitehouse-Levine, the CEO of the Defi Defense Group, the DEFI EDUCATION FUND, said that the rule is an “illegal and unconstitutional scope” and must be overturned to “protect the freedom of choice of Americans in the way they transug”.
“We urge all the members-and all those who want to establish the United States as a hub for financial innovation-to act quickly to maintain the initial intention of the congress by supporting the request aimed at canceling this erroneous rule,” he said.
If the resolution goes through the room, she then moves to the Senate, and if she was adopted there, she would then be sent to the American president Donald Trump to oppose his veto or sign.
The chairman of the way and means committee, Jason Smith, said in a declaration of February 26 that the legislation, implemented during the last days of former president Joe Biden, “could suffocate the Directorate of Digital Assets of America”.
“Not only is it unfair, but it is impossible. The DEFI brokers do not even collect information from the users necessary to implement this rule, “he said.
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“The former IRS commissioner, Charles Rettig, said publicly that this regulation would create a paperwork blizzard that IRS can neither manage nor administer effectively and efficiently,” added Smith.
Smith affirms that the IRS extended its conference directives in 2021 to unnecessarily regulate digital portfolio providers, which only took advantage of foreign cryptographic companies exempt from the requirements.
“The losers are the Americans of about four people who have a cryptocurrency,” he said.
Hundreds of Pro-Crypto candidates have won seats at the Congress, and the majority control of the Republican Party in the Senate and the Chamber of the United States led to speculation by industry leaders that the United States government could become the most pro-Crypto in history.
The change in leadership has already experienced many positive developments in cryptographic space, including the Securities and Exchange Commission of the United States ending several cases against cryptographic companies throughout February.
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