The U.S. Senate is set to vote on a crucial decision that could impact the landscape of DeFi reporting rule and crypto taxation. The vote is regarding an IRS regulation that has raised concerns in the decentralized finance (DeFi) space. The IRS rule broadened the definition of "brokers" required to report tax information, which has created compliance issues for the DeFi industry. A group of Republican senators are using the Congressional Review Act (CRA) to challenge the IRS rule and another regulation targeting payment apps and digital wallets. If successful, the CRA vote could reset the IRS rule and open up an opportunity for a more tailored approach to crypto tax reporting. The crypto industry argues that applying traditional broker rules to DeFi is impractical and stifles innovation. The outcome of the Senate vote will have significant implications for the future of decentralized finance and the wider crypto industry, as it could set a precedent for global crypto regulation. Regardless of the outcome, a balanced and innovation-friendly regulatory environment is necessary to foster the growth of the crypto industry while protecting consumers and preventing illicit activities.



Other News from Today