The IRS’ DeFi rule (which proposed stricter tax reporting for DeFI transactions) is set to be repealed, following a 70-28 motion vote by the US Senate.
Now on the desk of President Donald Trump, the resolution is widely expected to be signed. And it’s a move welcomed by cryptos, like the Best Wallet Token, and DeFi protocols in particular.
That’s because the definition of ‘digital asset brokers’ was updated to include digital asset exchanges and kiosks, crypto payment processors; custodial wallet providers; and front-end DeFi service providers.
And this meant DeFi platforms would need to implement KYC policies and share taxpayers’ details with the IRS.
Not nice. Not nice at all…
IRS Defi Rule Has The Market Up In Arms
Opponents claimed the rule was inherently impractical. After all, DeFi platforms function through self-executing code on blockchains. So they don’ track users’ identities.
‘This rule, issued as a midnight regulation in the final days of the previous [Biden] administration,’ according to a March 4 statement issued by the US Office of Management and Budget.
Whitehouse AI and crypto czar David Sacks also voiced the US administration’s support of repealing the DeFi Rule on his personal X account. Now that the Senate has since voted in favor of this, it’s highly likely that Trump – a major advocate of cryptocurrency – will sign it.
In another pro-crypto move, Trump told summit delegates that he has ‘also called on Congress to pass landmark legislation creating simple, common sense rules for stablecoins and market structure.
‘And with dollar-backed stablecoins, you’ll help expand the dominance of the US dollar and many, many years to come,’ he said.
Trump’s remarks about stablecoins appear well-timed. His World Liberty Financial (WLFI) firm announced on March 25 that the company is about to launch its own dollar-pegged stablecoin – $USD1.
Speaking of, Wyoming Prepares for First State-Issued Stablecoin
Yesterday, Governor Mark Gordon announced that Wyoming is preparing to launch the first state-issued stablecoin.
The Wyoming Stable Token ($WYST) will be backed by cash and US Treasury securities, and it’s expected to launch in mid-2025.
Stablecoins aren’t anything new, with the likes of Tether and $USDC leading the charge by market cap. But lately they’ve been gaining traction, with more companies and institutions introducing their own stablecoins.
Ripple, for instance, introduced its own native stablecoin – $RLUSD – in December last year. ‘The stablecoin market is valued at $160B and projected to grow to $3T by 2028,’ according to Ripple president Monica Long.
‘To meet this growing demand, there’s a need for stablecoins that will prioritize regulatory compliance, increase diversification, and drive utility.’ Long says the Ripple stablecoin was launched to continue to bridge the gap between traditional finance and blockchain.
‘Brokers’ Definition A Concern For Custodial Wallets like Best Wallet
With Trump set to approve the motion to repeal the IRS DeFi rule, the market has breathed a collective sigh of relief. But it’s also a stark reminder of the importance of using a non-custodial wallet, like the Best Wallet app.
After all, the rule not only applied to DeFi protocols – the IRS considered custodial wallet providers as digital asset brokers too.
Most importantly, though, it’s a fully non-custodial wallet. That means you have complete control of your Best Wallet’s private keys. No one can access your digital assets – not even the IRS.
But know what’s even better?
The Best Wallet Token Powers the Best Self-Custody Wallet
The team behind this crypto wallet has also introduced its own native coin – the Best Wallet Token ($BEST). Currently in presale, $BEST is set to help Best Wallet dominate 40% of the very lucrative crypto wallet market, while giving $BEST holders a range of benefits.
Among those benefits are lower transaction fees, exclusive access to the best presale tokens, rewards that you can claim through $BEST airdrops.
The Best Wallet Token presale has seen impressive investor interest, with $11.4M already raised. And considering Best Wallet has a consistent 50% monthly user growth rate, $BEST has the potential to be one of this year’s top presales.
Currently, 1 $BEST costs $0.0245, and staking your $BEST could see you earn 137% APY. Being a presale, though, the price increases in stages. Our guide to buying $BEST explains how to invest before the next increase.
Remember, though, as with any investment – be it $BEST or the soon-to-be-launched $WYST, or the top trending new crypto – don’t forget to DYOR. We’re not financial advisers, so you need to do your own homework before investing in any crypto.
