President Donald Trump’s cryptographic Czar officially approved legislation that would prevent the IRS from imposing strict report rules on decentralized financial projects – forcing the first time that the Trump administration explicitly weighed on pending cryptographic policy.
David SacksTrump’s crypto politics, said on Tuesday that the White House “strongly supports” the passage of a joint Congress resolution This would cancel a controversial Rule of the Biden era expanding the definition of “broker” to include most DEFI projects.
Many in the industry argue that the rule, which has not yet entered into force, could almost eliminate the DEFI sector by obliging the protocols without authorization to comply with the requirements of strict reports designed for Wall Street brokers.
“This rule, published as midnight regulations in the last days of the previous administration, would stifle American innovation and would raise confidentiality problems concerning the sharing of personal information from taxpayers, while imposing an unprecedented burden on American companies DEFI,” said Sacks in a statement.
The Silicon Valley entrepreneur added that if the Chamber and the Senate adopt a resolution to cancel the Rule of the IRS, Trump’s senior advisers would recommend that the President sign it.
Last week, a chamber committee voted to get the measure to a full vote. Meanwhile, in the Senate, a version of the resolution presented by Senator Ted Cruz (R-TX) has 13 co-sponsors, all Republicans. The legislation should go through the two chambers with simple majorities before it goes to Trump’s office to be promulgated.
Industry defenders claim that the IRS rule, as it is currently, would be unfair to users DEFI and impossible to comply with the DEFI protocols. This would force all American users to link their addresses on the chain to their identity, a delicate subject in the subject of the privacy of decentralized finance.
It would also force the protocols DEFI without authorization – automated systems managed by intelligent contracts which, in many cases, do not imply human surveillance – to register as brokerage companies of Wall Street in brick and mortar with traditional business leadership structures.
On Tuesday, Crypto’s policy leaders rushed to thank the bags and the Trump administration for having put their weight behind the effort to prevent the new IRS rule from entering into force.
A very important step to cancel a very damaging policy of the Warren era – that which destroys small blockchain projects and strangles the tax revenues that the industry would produce differently.
– Bill Hughes: wchughes.eth 🦊 (@billhughesdc) March 4, 2025
Coin Center, an crypto lobbying group based in Washington, was one of those organizations that applauded it. Just a day before, the executive director of the Peter Van Valkenburgh group wrote that even if “there have been a lot” of American politicians who become more user -friendly towards the crypto, the next vote on the reduction of the new IRS broker rule will constitute “a first decisive test of this theory”.
Publisher’s note: This story has been updated after publication with additional details.
Edited by Andrew Hayward
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