Trump’s First Crypto Law Ahead?
U.S. lawmakers voted to remove the IRS rule, which requires crypto companies, including the Defi platform, to collect and report taxpayers and transaction information. The House passed 292-132 votes after the Senate decided to reject the rules finalized by former President Biden’s administration in the last few days. This may change the way crypto businesses are regulated.
Fox Business News reporter Eleanor Terrett pointed out that the Senate will need to vote on the resolution again because of the rules that budget-related bills must start in the House. Once the vote passes, it will serve as President Trump’s desk as the first bill related to encryption.
Missouri Republican Jason Smith urged lawmakers to support the resolution, saying IRS domination could hurt our businesses and kill innovation. He added that the rule may not be enforced because the Defi platform is different from a centralized crypto exchange or bank and cannot collect the required user information to comply with the rules.
Last week, 70 senators voted to overthrow the IRS rule, and Trump’s advisers urged him to sign. Rep. Jason Smith (R-Mo.) noted that the Senate must re-approve it due to budget rules. If signed, the IRS will be prevented from enforcing similar rules in the future.
Danny Davis, a Democrat in Illinois, believes the rule is part of the Infrastructure Act 2021, comparing cryptocurrencies to stocks and saying crypto platforms should report like stockbrokers. Meanwhile, North Carolina Republican Tim Moore claims that the rule has been extended and could damage U.S. innovation in digital assets.
Lloyd Doggett, a Democrat in Texas, called the resolution “special interest legislation,” saying it could help tax deception, criminals and terrorist financiers and add $4 billion to Treasury debt, opposing President Trump’s goal of cutting debt.
