President Donald Trump has removed Billy Long as Commissioner of the Internal Revenue Service (IRS) after just two months in the role, appointing Treasury Secretary Scott Bessent as acting commissioner. Long will be nominated for an ambassadorship position. Bessent, a known advocate for cryptocurrency-friendly policies, previously oversaw the Treasury's termination of the IRS's proposed DeFi crypto transaction reporting rules earlier this year.
Bessent's appointment signals continuity in the administration's pro-digital asset stance, as he actively participates in the White House Digital Asset Working Group. This group recommends classifying cryptocurrencies as a distinct asset class with tailored tax rules similar to securities or commodities. Bessent's interim leadership could accelerate efforts to clarify corporate alternative minimum tax guidelines for digital assets.
The transition coincides with Senator Cynthia Lummis' legislative push to eliminate double taxation for Bitcoin and other cryptocurrencies, including a proposed de minimis exception for transactions under $300. While no immediate market impact has been observed, analysts suggest Bessent's influence may align IRS policies with ongoing congressional efforts to reform crypto taxation frameworks.