Hold onto your digital hats, folks! The Senate just gave a big thumbs down to a tax rule from the Biden era that had crypto platforms sweating bullets. This rule was all about making crypto platforms spill the beans on customer transactions to the IRS starting in 2027. The aim? To treat DeFi platforms just like traditional financial institutions when it comes to taxes. But not so fast, said the Senate!
In a surprising twist of bipartisan love, led by none other than Senator Ted Cruz, the Senate voted 70 to 27 to kick this rule to the curb. Cruz and his crew argued that DeFi platforms aren't your typical brokers and that slapping them with hefty compliance costs just isn't fair.
Coinbase's top legal eagle, Paul Grewal, was practically dancing in the aisles, noting that when Democrats and Republicans put their heads together, magic happens! Meanwhile, Senator Cruz called this repeal a major win for crypto, hinting that digital assets were a hot topic during the last election.
But not everyone is popping champagne. Mike Kaercher from NYU's Tax Law Center warned that ditching the rule might push the crypto world further into the shadows, making it harder to tackle crimes like tax evasion and even more serious offenses.
In the meantime, the crypto world has been on a bit of a rollercoaster. DeFi's total value locked has dipped to $102 billion from its December 2021 peak of $212 billion. The crypto market saw a slight recovery, with total capitalization climbing 2% to hit $2.97 trillion.
Bitcoin managed to claw its way back to $88,000 before taking a little breather, while Ethereum saw a modest 4% bump, still hovering around its lowest point in over a year. But hey, XRP, Cardano, Hedera, and Bitcoin Cash seem to be riding the wave with some decent gains. It's a wild ride in the crypto world, folks, and it's not slowing down anytime soon!
