US Senate May Repeal Broker DeFi Rule: What Does It Mean?

user avatar

by Giorgi Kostiuk

2 years ago

The US Senate is considering the repeal of a rule requiring DeFi platforms to share user data with the IRS. What is this rule about, and why is it controversial?

History and Concept of the Broker DeFi Rule

On March 4, the US Senate released a Congressional Review Act to rescind the 'Broker DeFi Rule' established during the Biden administration. This rule mandates DeFi platforms to share user data with the IRS. Crafted by Sen. Ted Cruz and 13 co-sponsors, the rule awaits voting, initially set for March 5 but subject to delays.

This rule expands the term 'broker' to include software providing access to DeFi platforms.

Criticism and Issues with the Rule

Critics argue that the rule misunderstands DeFi platforms, treating them as intermediaries. Kristin Smith of the Blockchain Association deems the rule unconstitutional, fearing it could force businesses offshore.

Such a decision threatens innovation and economic growth.

Prospects of Repealing the Rule

The rule's repeal seems likely given the Trump administration's pro-crypto stance. Trump's support for crypto tax relief is at odds with the Broker DeFi Rule. Moreover, Trump has expressed willingness to abolish the IRS.

Repealing the Broker DeFi Rule could be essential to supporting the US crypto industry by ensuring privacy and favorable growth conditions.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Investigation Reveals Hacker Controls Millions in Altcoins

Investigation reveals that a hacker controls significant holdings in various altcoins, posing a risk of market impact.

user avatarFilippo Romano

ZeroBeta and Lynq Integrate Tokenized Treasury Holdings for Enhanced Institutional Finance

ZeroBeta and Lynq have announced a new integration that connects tokenized Treasury holdings to institutional borrowing and trading, allowing eligible assets to be pledged as collateral while accruing interest.

user avatarEmily Carter

Spiko Announces $238 Billion in Tokenized Investment Fund

Spiko has reported a remarkable $238 billion in its Amundi Overnight Swap Fund (SAFO), emphasizing the rising significance of tokenized investment products in business cash management.

user avatarTomas Novak

Kraken Launches New Funding Route for USDG on Arbitrum One

Kraken has launched a new funding route for Global Dollar (USDG) on Arbitrum One, enhancing the ease of transactions between the exchange and blockchain wallets.

user avatarKaterina Papadopoulou

SAT Japan Introduces Stablecoin Payment Option for Vehicle Exports

SAT Japan has launched a stablecoin payment route through TripleA, enabling cross-border car purchases using USDT and USDC.

user avatarMaya Lundqvist

Ripple and Water.org Enhance Partnership for Efficient Water Financing

Ripple and Water.org are expanding their partnership to leverage payment and stablecoin infrastructure aimed at improving water and sanitation financing.

user avatarLeo van der Veen

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.