White House Backs Crypto Industry's Push to Repeal IRS Broker Rule
1min read The White House has thrown its support behind an effort to repeal a broker definition rule that has been deemed a threat to the crypto community. The rule, which was finalized by the Internal Revenue Service (IRS) in 2020, expanded the definition of a broker to include entities that facilitate the transfer of virtual currencies, such as cryptocurrencies.
The crypto community has long argued that the rule is overly broad and could have unintended consequences for the industry. The rule requires brokers to report transactions to the IRS, which could potentially expose users' personal information and discourage participation in the crypto market.
The White House's support for the repeal effort comes as part of a broader push to promote innovation in the crypto industry. In a statement, a White House official said that the administration is committed to supporting the growth of the crypto industry while also ensuring that it is subject to appropriate oversight and regulation.
The repeal effort is being led by a group of lawmakers, including Senator Pat Toomey (R-PA) and Representative Tom Emmer (R-MN), who have introduced legislation to repeal the broker definition rule. The legislation has been endorsed by a number of crypto industry groups, including the Blockchain Association and the Chamber of Digital Commerce.
The crypto community has welcomed the White House's support for the repeal effort. "We appreciate the White House's recognition of the importance of the crypto industry to the U.S. economy and its commitment to promoting innovation in the sector," said Kristin Smith, executive director of the Blockchain Association.
However, the repeal effort faces an uphill battle in Congress. Democrats have been critical of the crypto industry and have expressed concerns about its potential for use in illicit activities. The repeal legislation will need to overcome these political headwinds in order to become law.
In the meantime, the crypto industry is continuing to push for regulatory clarity and a more favorable regulatory environment. The industry has been working with lawmakers and regulators to develop a comprehensive regulatory framework for crypto assets, which could help to address some of the concerns raised by the broker definition rule.
