The Senate has voted to eliminate a rule from the Biden administration that required certain cryptocurrency platforms to report customer transactions to the Internal Revenue Service. This decision marks a significant bipartisan victory for the cryptocurrency industry, which has faced increasing regulatory scrutiny.

The repealed rule was set to take effect for the tax year 2027 and aimed to enhance tax compliance by mandating decentralized finance platforms to provide detailed customer information. This requirement would have aligned them with the reporting obligations of centralized exchanges and stock brokerages.

Concerns had been raised regarding the potential negative impact of such regulations on the growth of the cryptocurrency sector. The repeal reflects a growing sentiment among lawmakers to support the expanding industry amid ongoing discussions about regulatory frameworks.

📎 Related coverage from: wsj.com