U.S. President Donald Trump has signed a measure reversing an IRS cryptocurrency taxation rule adopted late in the previous administration. This action is largely backed by Republicans and aims to support developers in the decentralized finance sector.
Legislative History
The regulation mandated custodial brokers to provide user transaction reports to the IRS and send out Form 1099s for non-employment income. Members in both the House and Senate endorsed repealing this mandate introduced in the closing days of the Biden presidency.
Congressional and Administrative Actions
Rep. Mike Carey, witnessing the signing, stated, "Repealing this misguided regulation by President Trump and Congress allows the IRS to refocus its efforts on the responsibilities and obligations it already has to American taxpayers." This reaffirms the effort to eliminate administrative burdens on the crypto industry.
Industry and Regulatory Reactions
The crypto community views the repeal positively. Developers and decentralized platforms now understand how to proceed with compliance without undue burdens. The decision signals that the United States is open to alternative methods of managing digital assets.
The repealing of the IRS regulation marks a key step towards ensuring regulatory balance in cryptocurrencies, potentially facilitating further technological advancements and fostering industry innovation.
