It can soon be eliminated a major tax base targeting decentralized financing (Defi), as US President Donald Trump 
Donald Trump Donald Trump is a former American president, a businessman, and a media figure, who held the position of forty -fifth President of the United States between 2017 to 2021. Trump won the Bachelor of Science in Economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential elections as a candidate for the Republican Party against the Democratic Party candidate Hillary Clinton. In his capacity, Trump ordered a travel ban on citizens from many Muslim majority countries, transforming military financing towards building a wall on the border between the United States and Mexico, and implemented the family separation policy. Trump remained a prominent figure in the Republican Party and is considered a potential candidate for the 2024 presidential elections president It is expected to sign a decision to cancel it. The rule, which was presented during the BIDEN administration, requires Defi platforms to report encryption transactions to the Tax Authority, such as traditional financial institutions.
Senate Voices to cancel the requirements of encryption
The Senate voted 70-28 in favor of canceling the base, following a similar decision by the House of Representatives earlier this month. The encryption community has been widely exposed to its extensive criticism for being impractical and innovation taxes. Supporters argue that Defi platforms are working differently from central financial entities and should not be subjected to the same reporting rules.
Critics say the rule was not applicable
The coding defense groups, including the Blockchain Association, praised the Senate Decision, describing it as a victory for Defi innovation.
Christine Smith, CEO of Blockchain Association, has expressed her gratitude to the Senator Ted Cruz, actor Mike Curry, and other legislators to vote to cancel a base that can restrict Crypto and Defi Innovation. She emphasized that their leadership helps secure the future of digital assets in the United States and is now looking forward to Donald Trump’s final approval to permanently cancel them.
However, some experts Argue The rule was unrealistic and would put excessive burdens on decentralized platforms, making compliance almost impossible.
However, opponents of cancellation, such as Democratic Representative Lloyd Dujet, warned that removing the base can open the doors for tax evasion and illegal financial activities. He claimed that maintaining the organization in its place would have helped prevent wealthy investors from exploiting tax gaps.
What next?
With Trump’s approval of the cancellation, the rule will soon be outside the books. The decision highlights the changing political scene on the organization of encryption, as the industry gains stronger support in Washington. Currently, DEFI’s a sigh of relief can breathe, knowing that they will not have to comply with the requirements of reporting the Tax Authority that many have seen as an existential threat to the sector.
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