news 
IRS Rule Sparks Crypto Backlash: Congress Moves to Shape the Future of Crypto Taxation
A significant backlash has emerged in response to the recent IRS rule regarding cryptocurrency taxation, prompting Congressional action. The crypto industry is pushing back against the restrictive measures, demanding clarity and regulatory frameworks that align with decentralized finance (DeFi) principles.
The Trump-era tax cuts have expired, necessitating comprehensive tax reform. As a result, Congress will focus on drafting new legislation addressing issues like kind exchanges, charitable deductions, and retirement account taxation. However, the newly finalized IRS broker rule has become an immediate priority for lawmakers to address. The crypto community is adamant that the reporting obligations imposed by this rule are incompatible with DeFi.
Despite bipartisan opposition and widespread industry backlash, the IRS pushed forward with its interpretation. In response, groups like the Blockchain Association and the Texas Blockchain Council have already filed lawsuits against the agency. It is expected that Congress will respond with a Congressional Review Act (CRA), marking the year’s first major crypto policy battle.
As the crypto space continues to evolve, traditional finance institutions are increasing their lobbying efforts in Washington D.C. Banks and funds are expanding their involvement in shaping crypto policy as they further develop their own cryptocurrency-related business lines. This intensification of trad-fi influence adds complexity to policy discussions within the industry.
To achieve meaningful results amidst growing political and industry power dynamics, collaboration among stakeholders is crucial. The role of fostering institutional relations will be vital in bridging gaps and defining crypto’s future in Washington.
Source: cryptonewsland.com
