US Senate Overturns IRS Rule Against DeFi and Crypto

The US Senate discussed the IRS crypto tax rule previously implemented by the Biden administration last Tuesday. This IRS broker rule required developers to collect, store and report personal identifying information of millions of Americans and hand it over to the IRS.

In a 70-27 vote turnout, the decision was to overturn crypto-related regulations. This resolution will be executed under the authority of the Congressional Review Act. Following this, the House of Representatives will still have to finalize a matching approval. 

President Donald Trump holds the final say, however, whether it will be signed into law or otherwise.

Pro-Crypto Figures Weigh In on IRS Rule Overturn

Senator Ted Cruz, the resolution’s sponsor, said that DeFi is a microcosm of the crypto revolution, as part of his remarks on the Senate floor. before the vote on what he called an “incoherent” federal overreach. He argued that the rule targeting software developers as brokers (and compelling them to disclose user data and personal information) didn’t make sense. “Their software never holds or controls user funds.”

Furthermore, Senator Cruz also commended the support from Democrats, citing the “clear delineating line” that demonstrated younger members were more likely to support the effort than older ones.

“Let’s rescind this rule, and let’s unleash the future,” Cruz said.

The crypto industry view the IRS’ DeFi broker rule and a digital-payments rule from the Consumer Financial Protection Bureau as overencumbering financial innovation.

Direction of Crypto and DeFi Looking Up

This vote echoes previous attempts to remove Securities and Exchange Commission accounting standards for digital assets. Such developments continue a trend of bipartisan crypto-related legislation under the current administration.

The overturning of the IRS Rule looks to be just the beginning for a friendlier crypto economy in the USA. Speaking of the SEC, their Crypto Task Force has recently released the list of their members. Composed of pro-crypto experts, they are tasked with lending their expertise to develop better regulatory measures for cryptocurrency.

What Does This Mean for Crypto Casinos?

For crypto casino operators and players, this development looks to improve the current environment. To date, the Trump administration is doubling up their efforts to cultivate an innovative and friendlier US cryptocurrency market.

Suffice to say, all eyes will be monitoring any and all developments with DeFi and cryptocurrency regulation in the USA.