The US Senate has voted to repeal a Biden-era rule requiring cryptocurrency platforms to report customer transactions to the Internal Revenue Service. The move is seen as a bipartisan victory for the growing crypto industry, which had opposed the regulation.
Under the repealed rule, decentralized finance (DeFi) platforms were set to start reporting detailed information on their customers to the IRS starting from tax year 2027. This was intended to improve tax compliance and bring DeFi into parity with centralized exchanges and stock brokerages.
The repeal is a significant development for crypto companies, which had argued that such regulations would be overly burdensome and stifle innovation in the sector.
Source: https://www.wsj.com/politics/policy/senate-crypto-tax-repealed-defi-irs-b97c1f7b