White House Signals Support for Rescinding IRS Crypto Rule
The White House has indicated that President Donald Trump is likely to endorse a congressional resolution aimed at rescinding a controversial Internal Revenue Service (IRS) rule concerning cryptocurrency. This rule was approved just before Trump took office, and its potential repeal has gained momentum among lawmakers.
In a statement released on Tuesday, David Sacks, the president’s crypto czar, announced that Trump’s senior advisers would recommend that he sign the Congressional Review Act (CRA) resolution into law. Sacks described the IRS regulation as a “midnight regulation from the final days of the previous administration,” labeling it an unnecessary hindrance to the growth of decentralized finance (DeFi) within the United States.
The regulation in question “inappropriately requires certain DeFi participants to report gross proceeds from cryptocurrency sales and other digital asset transactions, including sensitive data about the taxpayers involved,” according to Sacks’ statement. This statement comes as the U.S. Senate begins deliberations on the resolution, which could effectively nullify the IRS’s recent regulatory efforts under the authority of the CRA.
During the early moments of what is expected to be an extensive floor debate, a number of Democratic senators voted in favor of moving forward with Republican Senator Ted Cruz’s resolution, indicating a split within the party regarding the discussion. The initial motion to proceed received overwhelming bipartisan support, with a supermajority of senators voting 70-28 in favor of advancing the measure.
Jennifer Rosenthal, a spokesperson for the DeFi Education Fund, remarked, “In a bipartisan, super majority vote, the Senate has chosen to advance the discussion and debate surrounding the CRA resolution. This marks a significant step forward, and we now look forward to the full Senate vote.” For the CRA resolution to reach the president’s desk, it must successfully pass through both the Senate and the House of Representatives, where it has already made progress through a committee vote.
The CRA provides Congress with the authority to overturn recent regulations imposed by federal regulators, creating a tight deadline for lawmakers to challenge the previous administration’s actions. Senator Cynthia Lummis, an advocate for the crypto industry and chair of a digital assets subcommittee, expressed her concerns on social media platform X, stating that “these heavy-handed federal rules threaten to drive American crypto entrepreneurs overseas at a time when we should be fostering this industry domestically.”
This vote marks the beginning of what promises to be a significant week for the cryptocurrency sector in Washington. In addition to Trump’s recent expressions of support for a crypto reserve, he is scheduled to meet with crypto leaders and regulators at the White House later this week. Furthermore, the Commodity Futures Trading Commission is planning to host a forum for crypto CEOs.
