The US Senate has given 70–27 votes to reversed an internal revenue service rule, which would have implemented new reporting requirements on decentralized finance brokers.
As reported by Business Insider, the proposal was submitted by Senator Ted Cruise allowed Under the Congress Review Act on 4 March, it shows that both sides were against the rule of Biden-era. In December, DEFI platforms were required to report user data for tax compliance with the IRS DEFI Broker Rules, making them wider the definition of “brokers” to include them.
Since decentralized platform funds do not have or customers do not keep data in the same way as traditional financial institutions, critics claimed that the law was impractical. The Digital Asset Think Tank Coin Center referred to the proposal as “technically ineffective”.
“The Biden administration did everything to increase financial innovation in the United States,” the Senate majority leader John Thyun (RS.D.) said in a statement. “The Senate is working to undo these burden rules at a time to restore financial freedom for American people.”
The proposal will still have to pass the House of Representatives to deliver President Donald Trump for final approval, even after the Senate approved it. In addition to being banned from implementing the rule, IRS will also be banned from implementing similar policies in the future if the rule was to be made.
Supporting cancellation, the Blockchain Association, which represents popular cryptocurrency companies such as coinbase, cracks and uniswap labs, said it will survive unnecessary boundaries on DEFI innovation. According to the Defense Education Fund, the Senate vote “was the first of several historic milestones in the regulation of digital assets in the United States.”
This vote resonates previous efforts to remove the securities for digital assets and the exchange commission accounting standards and continues the tendency of bilateral crypto-related law.
The decision of the Senate may place the platform for more comprehensive regulatory reforms, as stabechoin and cryptocurrency market structure law is estimated to be on the legislative agenda.
A matching resolution has already been approved by the House Financial Services Committee, and a final floor vote is still pending. According to the White House, President Trump is expected to sign the bill as soon as possible.
