Congress Blocks IRS Crypto Rules, Big Win for Digital Money

Imagine you have a successful business. One day, the government tells you to write down and report all of your customers’ names, what they bought, and how much they paid. Doesn’t that sound like a bad dream? Imagine applying this rule to cryptocurrency transactions, such as the buying and selling of digital coins like Bitcoin.

In the US, this happened because of a rule called the “Broker Rule.” The last administration made this rule.

Why Lawmakers Want To Remove The Broker Rule

H.J. Res. 25 was approved by the House of Representatives of the United States of America on March 11. It aims to eliminate the “Broker Rule” that was implemented by the previous government. According to its critics, they claim it stunts new ideas from emerging and makes purchasing and selling digital assets too difficult. The Senate passed S.J. Res. 28 on March 5.

The bill aims to remove an IRS rule that forces certain brokers, including decentralized finance (DeFi) entities, to report transaction details. People who support the resolution say that the rule’s compliance is costly and could push cryptocurrency development out of the U.S.

French Hill, the chairman of the House Financial Services Committee, praised the decision and said:

The “Broker Rule” from the previous administration is a clear example of government overreach that could send the development of digital assets out of the United States.

The lawmaker also said, “I reversed this harmful, anti-innovation midnight rulemaking and felt proud to protect America’s leadership in the digital asset world.” The importance of working together across political boundaries to improve crypto rules was another point that Hill also underlined the need for and said:

“I look forward to working with my colleagues from both parties to make sure that the reporting requirements for digital assets under the Infrastructure Investment and Jobs Act are in line with how the technology works.”

Easier Crypto Rules

We need obvious laws and regulations, which will help to ensure that these technologies and businesses may flourish in the US. R-Mi Lisa McClain, Chairwoman of the House Republican Conference, remarked,

“We voted to get rid of another onerous rule that made selling digital assets more difficult than it needed to be.”

House Republicans are lowering barriers, encouraging new ideas, and raising the level of competition in the United States.

For the resolution to become law, President Trump has to sign it.

The White House has said it supports the bill, which is in line with its larger plan to loosen regulations and encourage new ideas in the digital asset sector.

What will happen next?

The White House has already shown support for removing this rule. If Trump signs it, crypto businesses and investors will benefit from its permanent removal.