- Trump’s approval of the crypto bill marks a major win for DeFi, removing IRS oversight and easing reporting rules.
- Stablecoin regulation is next, with Congress aiming for stricter issuer requirements to ensure stability and investor protection.
- Crypto’s political influence is growing, fueling bipartisan support for clearer regulations and industry-friendly policies.
For the very first time in history, a bill concerning cryptocurrencies has been signed into law by Donald Trump, the President of the United States of America, according to Documenting Bitcoin. The resolution lifted the IRS regulation restricting decentralized finance (DeFi) signed into law.
DeFi Sector Gains Relief from IRS Oversight
The resolution effectively nullifies an IRS rule issued in the final days of the Biden administration. Because of this regulation, DeFi platforms were categorized as brokers and were obliged to monitor and report user activities. However, the IRS was prohibited from enforcing similar limits in the future after Congress used the Congressional Review Act to reject it.
The bill saw bipartisan support in both the House and Senate. This indicates a growing acknowledgment of the crypto sector’s influence in Washington. With this regulatory hurdle removed, DeFi platforms can operate without the burden of excessive reporting requirements.
Stablecoin Regulation Next on the Agenda
Besides the IRS rule reversal, lawmakers are now shifting focus to stablecoin regulation. Congress is expected to pass legislation establishing clearer guidelines for stablecoin issuers. These cryptocurrencies, pegged to traditional assets like the U.S. dollar, are important in digital transactions.
The proposed legislation includes key provisions. The first requirement for stablecoin issuers is that they must be US-based. Maintaining reserves in U.S. Treasuries or cash equivalents held in U.S. banks is another requirement. In resolving the concerns expressed by authorities, this guarantees stability and investor safety.
Moreover, New York Attorney General Letitia James has urged legislators to expand federal oversight. She favors mandatory registration of crypto firms with federal authorities. Her stance is in line with the growing regulatory pressure on virtual asset markets.
Crypto’s Growing Political Influence
The crypto industry’s rising political power is evident. It invested over $119 million in last year’s congressional races, supporting pro-crypto candidates. Consequently, Trump’s administration has responded with a more favorable stance toward digital assets.
Bo Hines, leading Trump’s Council of Advisers on Digital Assets, confirmed that the White House prioritizes stablecoin legislation. The administration aims to finalize a bill before August. Crypto regulation is becoming a central issue in Washington. The legislative momentum could make the future better for the digital asset industry in the U.S.
