President Donald Trump has taken another step towards regulatory clarity after signing resolutions to repeal an anti-decentralization IRS crypto tax bill.
A White House statement disclosed that the pro-Bitcoin US president signed off on Thursday on repulsing the controversial IRS crypto tax bill. Notably, he gave his approval after Congress voted in favor of tossing the rule implemented by the Joe Biden administration late into its tenure.
New IRS Crypto Tax Law Meets Early End
For context, the Internal Revenue Service (IRS) announced in December that it has implemented a new crypto tax regulation extending to decentralized finance exchanges or “custodial brokers.” The updated guideline mandates that they operate like traditional Wall Street brokers and report user trading activities to the federal tax law enforcement agency.
The anti-decentralization tax law required that DeFi exchanges issue Form 1099 tax forms to customers to report nonemployment incomes from activities like trading and gambling and submit them to the IRS. Meanwhile, given the operation dynamics of DeFi firms, which operate without intermediaries and look to maintain decentralization, abiding by such rules raises concerns among industry leaders.
Senator Ted Cruz and Representative Mike Carey introduced a joint motion to repeal the rule earlier in the year, which the crypto industry saw as a last-minute effort by the former administration to extend its regulatory tyranny over the digital asset industry. Interestingly, the motion has now passed both chambers of Congress, receiving bipartisan support.
It bears mentioning that the IRS has been in the spotlight lately, primarily due to its handling of tax-related issues with the crypto industry. In early January, Representative Earl Buddy Carter proposed a bill to abolish the tax agency and simply tax payments in the US.
Trump Gives Presidential Support to Nullify IRS Crypto Bill
Furthermore, Trump indented his signatures on Thursday, ensuring the bill met its early end. Notably, the approval was expected, considering the White House has already supported the congressional disapproval of the bill in a March 4 statement.
Moreover, President Trump and his pro-Bitcoin appointees have abolished several rules that defeat the aim of making America the crypto capital of the world.
For perspective, the US Securities and Exchange Commission had earlier repealed Staff Accounting Bulletin 121 (SAB 121) under acting chair Mark T. Uyeda, which has encouraged banks to meddle freely with the cryptocurrency industry.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
