The US Senate canceled the new intermediary rule brought by the Biden administration and including crypto currency transactions with 27 votes against 70. The arrangement aimed to invalidate the rule of the Central Income Service (IRS) software developers and decentralized finance (defi) platforms that had to collect user information. The sensation approval is seen as a critical step towards the complete extraction of this application from the legal text. However, in order for the regulation to become official, the House of Representatives must decide in the same direction. The White House said that the bill will progress rapidly and will come to the final stage in a short time.
Cancellation of the rule and the process of legislation
The rule canceled by the Senate was evaluated within the scope of the Congress Investigation Law. This law enables the application to be completely eliminated and accepted as if it were never entered into force. Now the House of Representatives needs to reach a similar decision. If the Assembly approves, the bill will be presented to President Biden’s signature. If the president has signed, it will not be legally possible for IRS to go to an application in this direction.
This development shows that the US attitude towards crypto currency regulations may change. The fact that the bill passes through the Senate with such a big difference indicates that both parties can reach a certain compromise in their approach to the issue. Senator Ted Cruz names such as, the cancellation of this rule is critical for technology innovation, he said. Cruz stressed that a regulation that requires software developers to share user information will adversely affect the sector.
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How will crypto money arrangements be affected?
This decision may pave the way for wider regulation for the crypto currency market in the US. In the past, many controversial laws on crypto currencies have been proposed, and often there were disagreements between the parties. However, this time, the support of the democrats is seen as a remarkable development. In particular, the interest of young deputies to the crypto currency ecosystem shows that an inter -party consensus is possible.
The canceled arrangement of IRS also directly affected the defi ecosystem. Since decentralized financial platforms are usually working systems without the need for any intermediaries, they do not have a mechanism of collecting user information. Therefore, the regulation attracted great reaction. Now it is thought that legislators can adopt an approach to better understand the dynamics of the sector.
The decision of the US Senate in this direction may ensure the discussion of more comprehensive and balanced regulations in the future. The biggest expectation for now is that the House of Representatives will accelerate the process by taking a similar decision. If the process is completed, it will be much more difficult for IRS to bring similar rules in the future.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
