Trump Likely To Approve Resolution Rescinding Crypto IRS Rule

According to CoinDesk, the White House has indicated that U.S. President Donald Trump is likely to approve a congressional resolution aimed at overturning a recent Internal Revenue Service (IRS) rule concerning cryptocurrency. This development follows a statement from David Sacks, the president's crypto advisor, who criticized the rule as an unnecessary burden on decentralized finance (DeFi) in the United States. The rule, enacted in the final days of the previous administration, mandates certain DeFi participants to report gross proceeds from cryptocurrency sales and other digital asset transactions, including taxpayer data. The U.S. Senate has begun deliberations on the Congressional Review Act (CRA) resolution, which seeks to nullify the IRS rule. In a significant move, a bipartisan supermajority of senators, with a 70-28 vote, agreed to proceed with discussions on the resolution. This indicates a notable division within the Democratic Party, as some members joined Republicans in supporting the motion. Jennifer Rosenthal, spokesperson for the DeFi Education Fund, highlighted the importance of this step, emphasizing the progress towards a full Senate debate and vote. For the resolution to reach President Trump's desk, it must pass both the Senate and the House of Representatives. The CRA provides Congress with the authority to overturn recent federal regulations, setting a tight deadline for lawmakers to act against the previous administration's policies. Senator Cynthia Lummis, a proponent of the crypto industry and head of a digital assets subcommittee, expressed concerns on social media platform X, arguing that the federal rules could drive American crypto entrepreneurs overseas, at a time when the industry should be nurtured domestically. This vote marks the beginning of a significant week for cryptocurrency discussions in Washington. President Trump has expressed support for a crypto reserve and is scheduled to meet with crypto leaders and regulators at the White House later in the week. Additionally, the Commodity Futures Trading Commission is organizing a forum for crypto CEOs, further underscoring the administration's focus on the evolving crypto landscape.