- US President Donald Trump signed his first cryptographic legislation on Thursday.
- The bill abrogates an IRS rule issued in the last days of the Biden administration.
Donald Trump signed his first element of cryptography legislation on Thursday – a Bipartisan bill repealing a rule of internal revenue service published on the decreasing days of the Biden administration.
The rule has classified websites and portfolios that allow users to exchange crypto as brokers. He would have swept away the metamasque of the popular cryptographic portfolio or the website of the UNISWAP decentralized exchange, but not the underlying DEFI protocol.
DEFI applications and portfolios were necessary to start collecting large amounts of customer data in the name of tax evasion prevention and helping customers report their taxes at IRS, according to the now suspended rule.
It was the first bill focused on the Crypto-axé in law, according to representative Mike Carey, a republican of Ohio and the sponsor of the bill.
“The Defi Broker rule unnecessarily embarked on American innovation, breaks the privacy of everyday Americans, and had to overwhelm the IRS with an overflow of new deposits that it does not have the infrastructure to manage during the tax season,” Carey said in a statement.
The rule was to come into force in 2027.
As initially proposed, he would have swept the protocols Defi themselves, arousing the howls of the industry.
Officials have finally published a watered down version that only applies to front services.
However, Crypto developers and lawyers have warned that it could be an existential threat to decentralized finance, financial software based on blockchain designed to cut intermediaries such as banks.
Tuesday, more than $ 114 billion in crypto had been deposited through the thousands of protocols DEFI followed by Defilma.
The vast majority of this crypto has been deposited via websites and user -friendly applications, or frontal services, which allow people with little technical expertise to use DEFI protocols.
Some Democrats have warned that the bill would allow tax cheaters.
“The bill that is seized today repeatedly repeals the reasonable and important regulations of the Treasury ensuring that taxpayers comply with their income declaration obligations and do not judge the law by selling cryptocurrencies without reporting the gains,” said representative Richard Neal, Massachusetts Democrat, during a February audience.
The repeal of the rule would cost $ 4 billion in the US government, Neal added.
However, the bill crossed the congress, attracting the support of most Republicans and dozens of Democratic legislators.
“This bipartite action underlines our nation’s commitment to promote innovation and to ensure that Americans retain the freedom to choose how they pass,” said Amanda Tuminelli, manager of the crypto advocation advocacy firm, said to DL News.
Aleks Gilbert is the journalist of Defi, based in DL News, based in DL News. You can reach it at Aleks@dlnews.com.
