Trump Administration Supports Legislation to Protect DeFi from IRS Regulations

David Sacks, a chief crypto policy advisor under President Trump, has officially endorsed legislation aimed at preventing the IRS from imposing stringent reporting rules on decentralized finance (DeFi) projects. This move represents a significant moment of support from the Trump administration for the crypto sector. The proposed law seeks to rescind a controversial Biden-era rule that expands the definition of 'broker' within crypto, potentially jeopardizing the future of many DeFi protocols by subjecting them to heavy compliance burdens similar to those faced by traditional financial brokers. If passed, the legislation could foster innovation and privacy in the DeFi space while alleviating industry concerns regarding the impending IRS regulations.