US Senate Votes to Repeal Biden Administration’s Crypto Tax Rule
The United States Senate has passed a resolution to repeal the Biden administration’s crypto tax rule, which was set to include decentralized finance (DeFi) in its definition of a broker. The resolution, sponsored by Senator Ted Cruz, was approved with a vote of 70-27.
The rule, which was introduced by the Internal Revenue Service (IRS), aimed to broaden the definition of a broker to include individuals who facilitate or facilitate the exchange of virtual currencies, such as Bitcoin and Ethereum. However, the move was met with resistance from the crypto community, which argued that it would stifle innovation and lead to increased regulatory burdens.
Bipartisan Support for DeFi
The Senate’s decision to repeal the rule is a significant victory for the DeFi community, which has long argued that the rule was an overreach by the government. The resolution was supported by a mix of Democrats and Republicans, with several Democratic senators voting in favor of the repeal.
"This is a big win for the DeFi community," said Senator Ted Cruz, the sponsor of the resolution. "The rule was an overreach by the government, and we are glad that the Senate has seen fit to repeal it."
Next Steps
The resolution now needs to be approved by the House of Representatives, where a similar resolution has already been passed. If approved, the rule will be officially repealed, and the IRS will be blocked from pursuing similar policy in the future.
DeFi Education Fund Welcomes Decision
The DeFi Education Fund, a non-profit organization that aims to educate people about the benefits of DeFi, welcomed the decision, saying it was a "historic milestone" for the industry.
"The DeFi Education Fund is thrilled that the Senate has voted to repeal the rule, which will allow the DeFi community to continue to innovate and grow without the threat of excessive regulation," said a spokesperson for the organization.
Conclusion
The Senate’s decision to repeal the Biden administration’s crypto tax rule is a significant victory for the DeFi community, which has long argued that the rule was an overreach by the government. The decision demonstrates a growing recognition of the importance of DeFi and its potential to drive innovation and economic growth.
FAQs
Q: What is the DeFi community?
A: The DeFi community refers to the decentralized finance community, which is a group of individuals and organizations that are involved in the development and use of decentralized financial technologies, such as cryptocurrencies and blockchain.
Q: What is the Biden administration’s crypto tax rule?
A: The Biden administration’s crypto tax rule is a proposed rule that would broaden the definition of a broker to include individuals who facilitate or facilitate the exchange of virtual currencies, such as Bitcoin and Ethereum.
Q: Why did the DeFi community oppose the rule?
A: The DeFi community opposed the rule because it would stifle innovation and lead to increased regulatory burdens, which could hinder the growth of the DeFi industry.
Q: What is the next step for the rule?
A: The next step for the rule is for it to be approved by the House of Representatives, where a similar resolution has already been passed. If approved, the rule will be officially repealed, and the IRS will be blocked from pursuing similar policy in the future.
