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President Warming Up His Pen to Sign Resolution to Kill IRS Crypto Rule If Passed
As the U.S. Senate began its process to consider a resolution to erase the recent IRS rule that targets DeFi, the White House cheered it on.
Updated Mar 4, 2025, 5:12 p.m. Published Mar 4, 2025, 5:04 p.m.
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What to know:
- The White House is standing by to likely sign Congress' effort to reverse an IRS crypto rule on that makes hefty disclosure demands of decentralized finance projects, according to a statement from President Donald Trump's advisers.
- The Senate on Tuesday was moving toward a vote on Senator Ted Cruz's resolution to throw out the rule, drawing the support of 70 senators — including a significant number of Democrats — to approve the debate.
The White House is signaling a likely approval from President Donald Trump if a congressional resolution hits his desk that would rescind a crypto Internal Revenue Service rule approved just before he returned to office.
Trump's senior advisers will recommend he sign the Congressional Review Act resolution into law, according to a Tuesday statement posted by David Sacks, the president's crypto czar, saying that the "midnight regulation in the final days of the previous administration" is an unnecessary burden on decentralized finance (DeFi) in the U.S.
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The rule "inappropriately requires certain DeFi participants to report gross proceeds from cryptocurrency sales and other digital asset transactions, including data about the taxpayers involved," according to the statement, which emerged as the U.S. Senate began considering the resolution that could delete the IRS' work under the authority of the CRA.
In the opening moments of what could be a longer floor debate on Tuesday, a number of Democrats voted yes on a motion to proceed with Republican Senator Ted Cruz's resolution, showing some split in the party over opening the discussion on it. The initial motion to proceed with Senate action drew what's known as a super majority of senators, 70-28, meaning more than two thirds of the chamber voted yes to move ahead.
"In a bipartisan, super majority vote, the Senate voted to move forward to discuss and debate the CRA resolution," noted Jennifer Rosenthal, a spokesperson for the DeFi Education Fund. "This is a tremendous step forward, and now we move to the debate before the full Senate vote."
In order for the CRA resolution to reach Trump, it has to pass both the Senate and the House of Representatives, where the matter had previously advanced through a committee vote.
Read More: U.S. Senate Expected to Vote on Erasing IRS's Crypto Broker Rule That Threatens DeFi: Source
The CRA allows Congress to get rid of the rules of federal regulators approved in a very recent time window, making a tight deadline for the lawmakers to oppose the work of the previous administration.
Senator Cynthia Lummis, an industry supporter who heads a digital assets subcommittee, argued in a post on social-media site X that "these heavy-handed federal rules threaten to drive American crypto entrepreneurs overseas at a time when we should be cultivating this industry at home."
The vote continues what promises to be a big week for crypto in Washington, with Trump's weekend expressions of support for a crypto reserve, to an end-of-week meeting with crypto leaders and regulators at the White House. The Commodity Futures Trading Commission is also planning a crypto CEO forum.
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CFTC's Selig opens legal dispute against states getting in way of prediction markets
Commodity Futures Trading Commission Chairman Mike Selig fired a legal warning shot defending his agency's jurisdiction over the event contract space.
Bilinmesi gerekenler:
- U.S. Commodity Futures Trading Commission Chairman Mike Selig directed his agency to file an amicus brief declaring his federal agency has authority over the U.S. prediction markets.
- Though the CFTC once fought a legal resistance against such firms as Polymarket and Kalshi, the agency has embraced them during the administration of President Donald Trump, whose son has worked as a paid adviser for the leading companies.
- As Selig defends his agency's jurisdiction in court, he's also pursuing new prediction markets rules for the U.S.
