The White House has signaled that U.S. President Donald Trump is inclined to approve a congressional resolution aimed at overturning a recently enacted Internal Revenue Service (IRS) regulation regarding cryptocurrency. This significant development comes in the wake of comments from David Sacks, the president's cryptocurrency advisor, who condemned the IRS rule as an unnecessary hindrance for decentralized finance (DeFi) within the United States.
The regulation, which emerged during the last days of the previous administration, stipulates that various DeFi participants must disclose gross proceeds from cryptocurrency sales and other digital asset transactions, additionally requiring the submission of taxpayer data. Currently, the U.S. Senate has commenced discussions related to the Congressional Review Act (CRA) resolution, designed to nullify the IRS regulation.
A noteworthy occurrence is that a bipartisan supermajority of senators, through a decisive 70-28 vote, has chosen to advance discussions regarding the resolution. This decision reveals a significant divide within the Democratic Party, considering that several members have allied with Republicans in endorsing the resolution.
Jennifer Rosenthal, spokesperson for the DeFi Education Fund, underscored the critical nature of this initiative, highlighting the crucial progress towards a comprehensive debate and vote in the Senate. To facilitate the resolution's passage to President Trump's desk, it must successfully navigate both the Senate and the House of Representatives.
The CRA empowers Congress to revoke recent federal regulations, imposing a stringent timeframe for legislators to counteract the policies established by the previous administration. Senator Cynthia Lummis, a champion for the cryptocurrency sector and chair of a digital assets subcommittee, articulated concerns via social media platform X, warning that such federal regulations could compel American crypto innovators to relocate overseas at a time when the industry is in dire need of domestic support and nurturing. This vote signals the commencement of an influential week for conversations surrounding cryptocurrency in Washington, as President Trump has publicly shown support for the establishment of a crypto reserve.
Additionally, he is scheduled to convene with leaders and regulators from the cryptocurrency space at the White House later this week. In parallel, the Commodity Futures Trading Commission is organizing a forum designed for CEOs within the cryptocurrency realm, further emphasizing the administration's commitment to navigating the rapidly evolving landscape of digital assets..