The votes of the chamber to repeal the regulations of the broker of the Crypto DEFI Irs

The House of Representatives pass A resolution to repeal the regulations that have created the declaration requirements to negotiate frontal service providers who work directly with users on digital asset transactions (chéloquente under the name of DEFI Brokers.) The 292-132 vote came shortly after the Senate approved His own bill on the issue by a vote of 70-27.

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 warned That illicit actors can whiten their money via the DEFI ecosystem in several ways, such as using transversal bridges to transfer cryptocurrency from one blockchain to another, asset mixers that come from the product of criminal activities with legitimate money or liquidity pools that provide costs of costs. The treasure said that ransomware gangs in particular like to whiten their money via DEFI networks.

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 Final regulations on sales and exchanges of digital assets on the new 1099-DA form for decentralized financial brokers, as well as Relief of the transition. The requirements for DEFI companies begin with or after January 1, 2027, two years later as the rules of centralized exchanges and platforms.

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 establishment a strategic bitcoin reserve and a stock of American digital assets. The reserve will deal with Bitcoin, the first and most popular cryptocurrency based on blockchain, as a reserve asset. It will be capitalized with tokens belonging to the Ministry of the Treasury which were confiscated within the framework of the procedure for confiscating criminal or civil assets.

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.