Dear @realDonaldTrump@JDVance@elonmusk@VivekGRamaswamy@DavidSacks@BoHines@howardlutnick Scott Bessent,
THE WAR 🆚 CRYPTO CONTINUES
The @POTUS/@ewarren administration finalized its crypto broker tax reporting rule on the Friday before New Year’s. As expected, it’s awful and un-American.
The IRS regulation “Gross Proceeds Reporting by Brokers that Regularly Provide Services Effectuating Digital Asset Sales” is an attack on DeFi protocols because it imposes broker-like reporting requirements on decentralized platforms that lack centralized control.
In sum, DeFi protocols are autonomous, permissionless smart contracts without intermediaries capable of collecting or reporting user information.
This new regulation is akin to @SenWarren’s Banker’s Ban on Bitcoin Bill, which served as a de facto ban on self-custody of Bitcoin because the requirements were impossible to comply with.
Enforcing these kind of requirements on DeFi will stifle innovation and continue to drive developers and projects offshore.
It’s an outright attack on DeFi because it undermines the core principles of decentralization and user privacy that define the essence of DeFi.
Make no mistake about it: this 11th hour attack is designed to undermine the next administration’s pro-crypto agenda. Along with stable coin legislation and rolling back SAB 121, among other things, the new Congress should quickly reverse this 11th hour in-American bullshit.