The U.S. IRS encryption tax regulations are expected to be revoked! AI encryption czar David Sacks: has already suggested President Trump sign.

On March 27, the US Congress voted to repeal the IRS encryption tax bill left by the Biden (Joe Biden) administration. AI encryption czar David Sacks also indicated that he has advised Trump (Donald Trump) to sign it. Interestingly, both parties in the US reached a consensus, with a high vote of 70 to 28 to repeal this bill, although some Democrats accused this as undermining the power of the US IRS (IRS).

The Biden administration rushed to implement new IRS regulations before leaving office, sparking criticism from the public.

This encryption tax regulation was hastily passed by the IRS at the end of December last year, coinciding with the Biden administration's departure, and was subsequently described by the Trump administration as the doomsday decree (Midnight Regulation ), with the core content including:

Require certain DeFi operators to report user personal information and transaction data like traditional brokers.

Require operators to send out 1099 forms, which report non-employment income ( such as gambling winnings, rents, royalties, etc. ) tax forms.

The target audience is "interfaces" that allow users to access DeFi platforms or websites, not specifically targeting DeFi protocols.

This move has triggered widespread criticism from the industry, stating that it severely infringes on user privacy. The non-profit organization DeFi Education Fund ( even filed a lawsuit against the IRS shortly after the regulation was passed.

The picture shows the legal documents filed by the DeFi Education Fund nonprofit organization against the IRS, with bipartisan congressional members working together to push the proposal, which was unanimously passed by both the House and Senate.

Republican Senator Ted Cruz and Representative Mike Carey jointly proposed a resolution to abolish this IRS rule. The measure was first passed in the Senate, then followed by the House of Representatives, and finally returned to the Senate for a final vote. Here are the latest developments:

The Senate passed the resolution to repeal by a vote of 70 to 28 on March 27.

A few Democratic senators have also switched sides in support, such as Senate Democratic Leader Chuck Schumer.

According to the U.S. budget law, the resolution is tied to the budget, so it can be directly sent to the president for signature after passing.

The DeFi community is cheering in unison, warning that excessive regulation will drive away innovation.

In this regard, Amanda Tuminelli, the Executive Director of the DeFi Education Fund, stated: "This is an important step to protect American innovation and prevent developers from being crushed by excessive regulation."

It is emphasized that if such rules are not withdrawn, it will force the entire DeFi industry to leave the United States.

Some Democrats accuse of weakening the IRS

Although there are some Democrats supporting this case, there are also voices that believe the Republican move is merely an attack on the power exercised by the IRS.

Democratic Congressman Richard Neal stated at a hearing in February, "The Republican Party is the one that has been cutting the IRS budget, and now they want to weaken the enforcement tools."

The Trump administration is expected to sign the first "encryption bill".

The Trump administration had previously opposed this regulation multiple times and released a statement on 3/4 criticizing it as "Biden's chaotic policy at the last moment," warning that it would lead to serious personal data leakage issues.

Currently, AI encryption czar David Sacks has stated that senior advisors to President Trump are prepared to recommend that he sign this resolution. Meanwhile, Ron Hammond, Senior Director of Government Relations at the Blockchain Association, mentioned that this would be the first bill related to the encryption industry signed by the Trump administration after taking office.

Ron Hammond posted on Twitter about the repeal of the IRS encryption tax law.

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This article is expected to revoke the U.S. IRS encryption tax regulations! AI encryption czar David Sacks: has advised President Trump to sign it, first appearing in Chain News ABMedia.