The US House of Representatives Tax Committee fluctuates the base of the encryption broker – Cryptomode
The American House of Representatives and means of roads in the US House of Representatives took a major step towards turning the rule of the controversial tax department that provides for the collection of guard brokers and reporting user data.
the 26-16 vote On Wednesday, the decision is submitted to the full parliament, which represents the way for a hot discussion about government control in the area of digital assets.
At the heart of this controversy, there are requirements to report the new tax authority, which was completed late last year. Al Qaeda extends to the commitments of traditional financial reports of decentralized financial services providers, which requires them to collect personal information and report user transactions in the 1099-DA model. Critics argue that this is incompatible with Defi, as many platforms work without central control.
A violent reaction in the industry after the ruling of the Tax Authority
Al-Qaeda opponents-in that MP Mike Curry, who made the decision-that the requirements can pay the innovation of encryption abroad and put an unrealistic burden on both companies and users. Curry, along with S-Texas, leads the charge to reflect what they call the government’s transcendence.
While Republicans largely support the purity of al -Qaeda, Democrats argue that its cancellation will undermine the efforts made to regulate the encryption industry and prevent tax evasion.
The Biden Administration has placed the base as a necessary tool to ensure tax compliance with the growing digital assets. Treasury officials argue that billions of tax revenues are lost every year due to the unwilling encryption transactions, which justifies strict enforcement.
The reaction comes as the Trump administration continues its efforts to create a more suitable environment in the United States, and the major encryption entities increase their influence within the government.
How was the industry reaction
The coding of Congress did not wait to act. The Blockchain Association, the DEFI Education Fund and the Texas Bluchin Council have already carried out The lawsuits submitted Against the Tax Authority, on the pretext that the base goes beyond the agency’s authority and it will be impossible for the non -guardian platforms.
Their main concern is that Defi platforms do not work like traditional financial institutions. There are no central entities processing transactions, which means that compliance with the base requires basic changes in how these protocols – or most likely, compel them to completely prevent American users.
The Treasury attempted to address some concerns by clarifying that the base applies primarily to “front service providers”-which facilitate Defi reactions instead of the protocols themselves. However, many in industry are still not convinced.
