The White House says it supports Congress’ resolutions aimed at repealing the so-called “broker defi rules.” This is a regulation that critics say is unfairly targeting the cryptocurrency industry and decentralized financial (defi) platforms.
White House Chief of Cryptocurrency and Artificial Intelligence David Sachs confirmed that the administration supports the Congressional Review Act (CRA) resolution introduced by Senators Ted Cruz and Mike Carrey. Measurements known as SJ res. 3 is attempting to repeal the Internal Revenue Service (IRS) regulations issued on December 30, 2024, expanding the definition of “intermediary” to include software that handles defi transactions.
The rules require certain DEFI participants to report their gross income from cryptocurrency sales and other digital asset transactions, including detailed information about the associated taxpayers. According to administrative management policies, the regulations can have a widespread impact on the digital assets ecosystem, raise privacy concerns and place serious compliance burdens on American Defi companies.
“The rules, issued as midnight restrictions on the last day of the previous administration, will curb US innovation and raise privacy concerns regarding the sharing of taxpayer personal information,” the statement said. “Our administration will continue to put the American people first by promoting a regulatory environment that promotes innovation, creates jobs and strengthens the economic prosperity of all Americans.”
The resolution will override the IRS rules if passed by Congress. According to the White House, SJ res. 3 Reaching President Trump’s desk, his senior adviser recommends signing it to the law.
*This is not investment advice.
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