The Blockchain Association, supported by 75 leaders in the cryptographic industry, urged the congress to repeal a newly implemented IRS rule which could have a significant impact on decentralized finance (DEFI). The rule, introduced between Christmas and New Year’s Eve, requires strict reports to the DEFI brokers, similar to those applied to traditional financial institutions.
Industry giants such as Coinbase (Nasdaq: Coin), A16z, Kraken, Uniswap and Digital Anchorage maintain that the rule is an overrun that ignorance of DEFI technology. They warn that it could suffocate American innovation while allowing foreign companies to serve American customers without the same regulatory charges.
Senator Ted Cruz introduced a resolution of the Congress Examination Act (CRA) to cancel the rule. The arc allows the congress to repeal recent federal regulations, but once a rule is reversed, a similar measure cannot be reintroduced. This process has already been attempted with the SEC staff accounting bulletin n ° 121, but was opposed to President Biden.
For the resolution to succeed, it must pass the two chambers of the congress and receive the presidential approval. With an increasing number of Pro-Crypto legislators after the 2024 elections, the industry sees a strategic opportunity to put pressure for regulatory clarity.
The crypto plea groups, including the DEFI education fund, joined the opposition, qualifying the rule of “plainable” and “unconstitutional”. They highlight the need to protect US from excessive regulations and maintain the leadership of the United States in blockchain innovation.
While the congress addresses key problems such as the federal budget, the cryptographic industry intensifies its efforts to ensure that DEFI remains a flourishing sector free from undue regulatory constraints.
