Recent data from the U.S. has fueled recession concerns, pushing the expectation of interest rate cuts for May to over 50%. As tariffs come into effect, Trump is attempting to ease the regulatory pressure on the crypto industry, which is currently facing uncertainty.
Regulation of DeFi
Davis Sacks highlighted the White House’s approval regarding the CRA presented by Senator Cruz, referring to the U.S. as a leader in cryptocurrency. This proposal aims to reject a rule issued by the IRS that mandates gross income reporting for brokers regularly engaged in digital asset sales.
The rule, which expands the definition of brokers to include DeFi protocols, was issued by the IRS on December 30, 2024. A joint resolution was introduced, signed by Ted Cruz and 13 supporters, to reject this measure.
“This rule was enacted as a midnight regulation during the last days of the previous administration. It will hinder American innovation and raise privacy concerns about taxpayers’ personal information. Additionally, it imposes an unprecedented compliance burden on American DeFi companies.”
The Presidential Management Office stated, “This administration is committed to creating a regulatory environment that supports innovation, creates jobs, and enhances economic prosperity for all Americans.”
