The American Senate is preparing to vote this week on a resolution aimed at canceling a recent rule of the internal income service (IRS) which has raised concerns within the cryptocurrency industry, in particular among the decentralized financing projects (DEFI).
In December, the IRS expanded the definition of brokers which must report tax information, including DEFI projects. Now, a few senators use the Congressional Review Act (CRA) to reverse this rule, as well as another regulation of the Consumer Financial Protection Bureau (CFPB) concerning digital payment applications.
Senator Ted Cruz presented a resolution to eliminate the IRS rule, while Senator Pete Ricketts leads the effort to cancel the CFPB regulations.
The head of majority, John Thune, criticized the Biden administration for imposing strict financial regulations, arguing that they could push cryptographic companies abroad. The Senate’s decision follows the decision of the Chamber of Financial Services in Chamber last week to advance a similar resolution.
Cruz, a Texas Republican, accused the Biden administration of harming cryptographic innovation with last -minute regulations. He expressed his confidence that the congress would vote to cancel the rule. Under the arc, these inversions must occur within a limited period based on legislative deadlines.
The CFPB rule aims to regulate large technological companies like Apple, Amazon and Google, which offer digital portfolios and payment applications. He would subject them to stricter financial monitoring similar to large banks. Senator Ricketts argued that the rule unjustly widens government control and could hinder innovation in digital payments.
The IRS and CFPB regulations were finalized in the last days of the administration of President Joe Biden. The Republicans were determined to cancel these regulations, citing the concerns of the overdification of taxation and regulations.
Meanwhile, the White House plans a crypto summit on March 7, according to Trump’s cryptography advisor David Sacks. The event will bring together leaders, CEOs and industry regulators to discuss the future of cryptographic regulations.
Also read: Eric Trump calls us the crypto-reserve of Sunday “Genius”
