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

Bitcoin Core Updates Security Disclosure Policy Amid AI Vulnerability Discoveries

Bitcoin Core has updated its security disclosure policy to accelerate the reporting of vulnerabilities discovered through AI tools.

user avatarRajesh Kumar

Bitcoin Core Developers Release Security Updates Following AI Discovery

Bitcoin Core developers have released security updates after an AI-powered code scan revealed three vulnerabilities, including a critical one that could crash nodes on Windows and macOS.

user avatarMiguel Rodriguez

CF Benchmarks Introduces CFB Oracle to Enhance On-Chain Price Integrity

CF Benchmarks has launched CFB Oracle, a service providing cryptographically signed index information for applications on Ethereum mainnet, HyperEVM, and Robinhood Chain.

user avatarLuis Flores

SEC Proposes New Custody Framework for Crypto Assets

The SEC has proposed a new custody framework for investment advisers and registered funds dealing with crypto assets, allowing for potential self-custody and the use of state trust companies as custodians.

user avatarArif Mukhtar

FINMA Approves First Swiss Retail Bitcoin ETF

Switzerland's financial regulator, FINMA, has approved its first retail ETF that invests directly in Bitcoin, allowing retail investors to gain regulated exposure to Bitcoin.

user avatarMaria Gutierrez

EIP7906 Proposal Considered for Enhancing Ethereum Transaction Safety

The Ethereum Foundation is considering EIP7906, which proposes a readonly post-transaction frame to evaluate changes and events before accepting transaction outcomes.

user avatarDavid Robinson

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.