27.02.2025 10:43
The U.S. House of Representatives has advanced a bill that removes the notification requirement for cryptocurrency brokers. This move aims to provide greater freedom in digital asset markets and strengthen the U.S.'s leadership in the sector.
The U.S. House of Representatives has taken an important step that closely concerns cryptocurrency investors and intermediaries. The House Committee approved a bill that aims to eliminate the requirement for cryptocurrency intermediaries to report transactions to the Internal Revenue Service (IRS) with a vote of 26 to 16. This regulation aims to repeal the existing strict reporting obligations, which will come into effect in 2027, and particularly covers transactions on decentralized exchanges.
Tax Reporting Requirement for Crypto Transactions is Being Eliminated
An important legislative initiative concerning the cryptocurrency ecosystem in the U.S. is on the agenda. The House of Representatives has put forward a new bill aimed at eliminating the requirement for cryptocurrency intermediaries to report their transactions to the Internal Revenue Service (IRS).
The proposed bill aims to repeal the expanded reporting obligations that include transactions by cryptocurrency intermediaries, especially on decentralized exchanges. This regulation was approved on December 5 and is planned to come into effect in 2027.
Leading the advocates for the repeal of the regulation, CEO of the DeFi Education Fund, Miller Whitehouse-Levine, argued that the current rule is "unconstitutional" and emphasized that the freedom of American citizens to conduct transactions must be protected.
The House Ways and Means Committee accepted the proposed regulation with a vote of 26 to 16 in the voting held on February 26. The next step for the proposal will be a vote in the full House of Representatives. If it passes there, the proposal will be sent to the Senate, and if approved there as well, it will be presented to President Donald Trump for his signature.
Committee Chairman Jason Smith pointed out that the current regulation could jeopardize America's leading position in the digital asset sector. Smith stated, "This regulation is not only unfair but also far from feasible," indicating the existence of a system where cryptocurrency intermediaries cannot collect the necessary information.
Smith also claimed that the unnecessary regulation of digital wallet providers due to the expansion of powers given to the IRS by Congress in 2021 only benefits foreign cryptocurrency companies. He noted that this situation negatively affects one in four Americans who own cryptocurrency assets.
The presence of hundreds of pro-crypto candidates in Congress and the Republican Party's majority in both the Senate and the House of Representatives have strengthened predictions that the country could have the most supportive government in its history regarding financial innovation.
These developments are being evaluated alongside positive advancements for the sector, such as the U.S. Securities and Exchange Commission's (SEC) termination of lawsuits against cryptocurrency firms in February.