U.S. Congress Moves to Overturn Crypto Tax Rules Amid Regulatory Shifts
The United States Congress is making significant strides in shaping the future of cryptocurrency regulation. Recently, both the Senate and the House of Representatives voted to repeal the Internal Revenue Service’s (IRS) decentralized finance broker reporting rule, according to a16z crypto. The Senate voted 70-27, while the House passed it with a 292-132 vote. The resolution now awaits the President's approval.
Congressional Developments
In addition to the IRS rule repeal, several legislative efforts are underway. Senate Banking Committee Chair Tim Scott introduced the Financial Integrity and Regulation Management Act, aiming to remove reputational risk from regulatory supervision. Senator Bill Hagerty reintroduced the GENIUS Act, a regulatory framework for stablecoins, which advanced through the Senate Banking Committee with an 18-6 vote. Senator Cynthia Lummis brought forward the BITCOIN Act to establish a strategic bitcoin reserve.
Meanwhile, House Representative Sam Liccardo plans to propose the MEME Act to prevent top officials from engaging in digital asset activities. Additionally, the Congressional Crypto Caucus, co-founded by Representatives Tom Emmer and Ritchie Torres, seeks to promote crypto-friendly policies in the legislative arena.
Regulatory and Judicial Actions
The Office of the Comptroller of the Currency (OCC) reaffirmed the authority of national banks to offer cryptocurrency custody services without requiring pre-approval. This move is seen as a step towards integrating digital assets into traditional banking services.
The Department of Justice, in collaboration with Germany and Finland, dismantled the Garantex cryptocurrency exchange, accusing it of processing $96 billion in transactions linked to money laundering. In another case, a New York man was convicted for defrauding investors of over $7 million through a fraudulent cryptocurrency investment scheme.
International and State-Level Developments
On the international front, Thailand's Securities and Exchange Commission added USDT and USDC to its list of approved cryptocurrencies for trading, while in the UK, a man received a four-year sentence for operating an illegal crypto ATM network.
At the state level, California's Department of Financial Protection and Innovation reported the shutdown of 26 crypto scam websites, uncovering $4.6 million in consumer losses. In Nebraska, Governor Jim Pillen signed the Controllable Electronic Record Fraud Prevention Act to combat cryptocurrency fraud.
White House and Treasury Initiatives
The White House hosted its inaugural crypto summit, gathering over 20 industry leaders to discuss the future of digital assets. President Donald Trump signed an order to establish a strategic bitcoin reserve and a U.S. digital asset stockpile, highlighting the administration's commitment to embracing the digital economy.
The Department of the Treasury sanctioned the head of Nemesis, an Iran-based darknet marketplace, linking him to fentanyl sales and sanctioning 49 virtual currency addresses associated with him.