Congress Votes to Repeal IRS Rule on DeFi Tax Reporting
Recent votes in the U.S. Congress indicate strong bipartisan support for the cryptocurrency industry, highlighting its shift from pariah status to having allies within the White House and financial agencies.
Key developments include:
- The House and Senate voted to repeal an IRS rule classifying decentralized finance (DeFi) projects as brokers, which would have imposed extensive tax reporting requirements.
- Votes received significant backing from both parties, with 19 Democrats in the Senate and 76 in the House voting against the IRS rule.
- This bipartisan support suggests potential favorable outcomes for future crypto-related legislation.
- A bill addressing U.S. stablecoin issuers is close to completion, with committee reviews currently underway.
- Legislation defining a regulatory framework for crypto trading and transactions remains a priority, aiming to eliminate confusion among federal agencies.
Following the 2024 elections, pro-crypto lawmakers benefited from substantial funding by the Fairshake political action committee, which invested around $139 million to elect supporters of the industry. The PAC currently holds over $116 million for future campaigns.
Major contributors to Fairshake include Coinbase, a16z, and Ripple Labs. Support for pro-crypto policies has previously garnered bipartisan interest, signaling a potential shift in legislative dynamics.