• 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

a year 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

CertiK's IPO Plans Reflect Industry Shift Towards Transparency and Institutional Engagement

chest

CertiK's pursuit of an IPO is supported by a significant investment from EZ Labs, indicating a shift towards transparency and institutional engagement in blockchain security.

user avatarLuis Flores

CertiK's IPO Could Catalyze New Asset Class in Blockchain Security

chest

Financial analysts predict that CertiK's IPO could catalyze the creation of a new asset class for publicly traded blockchain security firms.

user avatarMaria Gutierrez

CertiK Announces IPO Plans to Bridge Web3 Security with Traditional Finance

chest

CertiK founder Ronghui Gu announced plans for an IPO to become the first publicly listed company in Web3 security, enhancing understanding of decentralized technology in mainstream finance.

user avatarArif Mukhtar

France Flags Binance Among Non-Compliant Crypto Exchanges

chest

France's Autorité des Marchés Financiers (AMF) has flagged Binance as one of the 90 crypto companies that remain unlicensed under the Markets in CryptoAssets Regulation (MiCA).

user avatarDavid Robinson

Binance Submits MiCA License Application in Greece

chest

Binance has submitted an application for a MiCA license in Greece as compliance deadlines approach.

user avatarZainab Kamara

Grayscale Submits S1 to Convert Near Trust Into Spot ETF on NYSE Arca

chest

Grayscale Investments has submitted an S1 registration statement to convert its Near Trust into a spot ETF, aiming to expand its crypto offerings.

user avatarJacob Williams

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.