Final Stage in Decision that Could Start DeFi Rally in the USA: Now the Word is with Trump! - Coin Bulletin

The U.S. House of Representatives left the decision to President Donald Trump's signature by accepting the bill that cancels the tax regulation requiring the IRS to collect user data from decentralized finance (DeFi) platforms.

The lower house of the US Congress, the House of Representatives, took a significant step to repeal the IRS rule that is closely related to the decentralized finance (DeFi) sector and has caused major debates in the cryptocurrency market.

The bill prepared by Republican Mike Carey and Senator Ted Cruz received strong support with 292 votes in favor and 132 against. Senate will need to approve it again for it to become law, and then it will be presented for President Donald Trump's signature.

The proposed IRS regulation, which aimed to require platforms known as 'DeFi brokers' to report users' transaction data and tax information to the IRS, was to be canceled. In particular, the aim was to submit users' gains from cryptocurrency transactions to the IRS with a document known as 'Form 1099'. However, criticisms have intensified that this rule could push crypto companies out of the US and jeopardize users' privacy rights.

Unexpected support from Democrats

As expected, support from Republicans, including Senate Minority Leader Chuck Schumer and Pennsylvania Senator John Fetterman, among others, has come for the decision. This was one of the key factors that ensured the bill passed through the assembly with a significant majority. On the other hand, the majority of Democrats opposed the decision, arguing that it would increase the budget deficit by 4 billion dollars by reducing tax compliance.

According to the announcement from the Trump administration, the president's senior advisors will recommend the bill for approval to Trump. If the bill is signed by Trump, this rule imposed on the DeFi sector in the US will be completely abolished. Thus, not only will users' privacy concerns be addressed, but also a new era will be opened for the development of the sector in the US.