Trump Backs Bill to Repeal Anti-DeFi Crypto Tax Rule
1min read The Trump administration has thrown its weight behind a bill aimed at repealing an anti-DeFi irs crypto tax rule, marking a significant development in the ongoing debate over cryptocurrency regulation. In a statement released on Tuesday, David Sacks, the crypto policy chief of President Donald Trump, expressed the White House's strong support for a joint congressional resolution that seeks to undo a controversial Biden-era IRS rule expanding the definition of "broker" to include most DeFi projects.
Many in the crypto industry have criticized the rule, which has yet to go into effect, arguing that it could effectively eliminate the DeFi sector by imposing stringent reporting requirements designed for Wall Street brokers on permissionless protocols. Sacks echoed these concerns, stating that the rule "would stifle American innovation and raise privacy concerns over the sharing of taxpayers’ personal information, while imposing an unprecedented compliance burden on American DeFi companies."
The White House's endorsement of the bill, introduced by Sen. Ted Cruz and Rep. Mike Carey, signals a shift in the Trump administration's stance on cryptocurrency regulation. The move comes as the crypto industry continues to grapple with the potential impact of the Biden-era IRS rule and the broader regulatory landscape for decentralized finance projects.
Sacks' statement also indicated that should the House and Senate pass a resolution to undo the IRS rule, Trump's senior advisors would recommend the president sign it into law. This development highlights the growing political momentum behind efforts to roll back the Biden-era rule and underscores the importance of cryptocurrency regulation in the current political climate.
The crypto industry has long advocated for a more balanced approach to regulation, one that encourages innovation while also addressing legitimate concerns about tax evasion and market manipulation. The Trump administration's endorsement of the bill to repeal the anti-DeFi IRS crypto tax rule suggests that these efforts may be gaining traction in Washington.
