• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

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

user avatar

by Giorgi Kostiuk

10 months 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.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Strategy's Stock Sale Enhances Financial Stability

chest

Strategy sold 4535 million shares of Class A common stock, generating 7478 million in net proceeds to support its dollar reserve program.

user avatarFilippo Romano

MSCI's Proposal to Exclude Digital Asset Treasuries Raises Concerns

chest

MSCI proposed to exclude companies with significant digital asset holdings from its global benchmarks, raising concerns about potential market impacts.

user avatarEmily Carter

Fold Holdings Achieves Inclusion in Russell 2000 Index

chest

Fold Holdings, a Bitcoin financial services firm, has announced its inclusion in the Russell 2000 Index on December 22.

user avatarTomas Novak

Ripple Prioritizes Security with $200,000 Attackathon and Upcoming Validator Voting

chest

Ripple has allocated $200,000 for an attackathon in collaboration with Immunefi, emphasizing security as a priority.

user avatarMaya Lundqvist

Erebor Bank Secures Conditional FDIC Approval for Federal Deposit Insurance

chest

Erebor Bank, backed by billionaire Peter Thiel, has received conditional approval from the FDIC for federal deposit insurance, marking a significant step in cryptocurrency banking.

user avatarKaterina Papadopoulou

Options Trading Surges in Anticipation of Bond Rally

chest

Options trading has surged in the US Treasury market as traders anticipate a bond rally that could lower the 10-year yield to 4.

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.