Crypto’s Victory Over IRS Signals Stronger Congressional Support
The cryptocurrency industry has scored a significant win against the Internal Revenue Service (IRS), revealing an increasing level of support in Congress. This development suggests that crypto lobbyists may have to compromise less as lawmakers push forward with bills on stablecoins and market-structure regulations.
Key Takeaways:
- The crypto industry’s fight against an IRS tax rule has served as a crucial test for future U.S. legislation on digital assets.
- Widespread bipartisan support, including a significant number of Democrats, indicates strong backing for the industry in upcoming legislative debates.
Congress Sides with Crypto
In a significant political shift, U.S. lawmakers overwhelmingly opposed a recent IRS regulation that sought to classify decentralized finance (DeFi) projects as brokers, subjecting them to extensive tax reporting requirements. With strong bipartisan support, both the House and Senate voted to overturn the rule, signaling a growing alignment with the crypto industry.
Former President Joe Biden’s IRS had finalized this rule before his departure, but the recent Congressional Review Act votes saw 19 Senate Democrats and 76 House Democrats break with their party to reject the measure. This bipartisan stance suggests that crypto-friendly policies may receive broader acceptance in Congress moving forward.
A New Era for Crypto Legislation
For years, crypto lobbyists focused on defending the industry against regulatory crackdowns, often making concessions that diluted their legislative objectives. Now, with a more favorable political climate, the industry can adopt a proactive stance in shaping federal policies.
One of the most imminent legislative efforts involves stablecoin regulations. The House has already reviewed a draft bill, while the Senate Banking Committee is considering its own version. If these efforts advance, theCrypto’s Victory Over IRS Signals Stronger Congressional Support
The cryptocurrency industry has scored a significant win against the Internal Revenue Service (IRS), revealing an increasing level of support in Congress. This development suggests that crypto lobbyists may have to compromise less as lawmakers push forward with bills on stablecoins and market-structure regulations.
Key Takeaways:
- The crypto industry’s fight against an IRS tax rule has served as a crucial test for future U.S. legislation on digital assets.
- Widespread bipartisan support, including a significant number of Democrats, indicates strong backing for the industry in upcoming legislative debates.
Congress Sides with Crypto
In a significant political shift, U.S. lawmakers overwhelmingly opposed a recent IRS regulation that sought to classify decentralized finance (DeFi) projects as brokers, subjecting them to extensive tax reporting requirements. With strong bipartisan support, both the House and Senate voted to overturn the rule, signaling a growing alignment with the crypto industry.
Former President Joe Biden’s IRS had finalized this rule before his departure, but the recent Congressional Review Act votes saw 19 Senate Democrats and 76 House Democrats break with their party to reject the measure. This bipartisan stance suggests that crypto-friendly policies may receive broader acceptance in Congress moving forward.
A New Era for Crypto Legislation
For years, crypto lobbyists focused on defending the industry against regulatory crackdowns, often making concessions that diluted their legislative objectives. Now, with a more favorable political climate, the industry can adopt a proactive stance in shaping federal policies.
One of the most imminent legislative efforts involves stablecoin regulations. The House has already reviewed a draft bill, while the Senate Banking Committee is considering its own version. If these efforts advance, they could set the stage for broader regulatory clarity in the crypto market.
Moreover, the industry’s top legislative goal remains a comprehensive market-structure bill that defines clear regulations for cryptocurrency trading and transactions. If passed, this would eliminate regulatory uncertainty and prevent federal agencies from arbitrarily applying outdated laws to digital assets.
Political Influence and Crypto’s Growing Power
The pro-crypto movement has gained momentum, thanks in part to significant financial backing from industry giants. In the 2024 elections, the Fairshake political action committee (PAC), funded by companies such as Coinbase, a16z, and Ripple Labs, invested approximately $139 mily could set the stage for broader regulatory clarity in the crypto market.
Moreover, the industry’s top legislative goal remains a comprehensive market-structure bill that defines clear regulations for cryptocurrency trading and transactions. If passed, this would eliminate regulatory uncertainty and prevent federal agencies from arbitrarily applying outdated laws to digital assets.
Political Influence and Crypto’s Growing Power
The pro-crypto movement has gained momentum, thanks in part to significant financial backing from industry giants. In the 2024 elections, the Fairshake political action committee (PAC), funded by companies such as Coinbase, a16z, and Ripple Labs, invested approximately $139 million in supporting crypto-friendly candidates. The PAC currently holds $116 million, positioning itself as a powerful force in the 2026 election cycle.
This financial influence has made crypto policy a key consideration for lawmakers. Supporting digital asset regulations now offers political advantages, while opposing them could come at a cost in future elections.
The Road Ahead
The industry’s recent victories demonstrate a fundamental shift in how lawmakers view cryptocurrency. With bipartisan backing and strong financial influence, crypto advocates are poised to push for favorable legislation with fewer compromises. As Congress continues to deliberate on stablecoin rules and broader market regulations, the industry stands at a pivotal moment in shaping the future of U.S. crypto policy.
Stay tuned for further developments as digital assets gain increased legitimacy in Washington.
Crypto’s Victory Over IRS Signals Stronger Congressional Support
The cryptocurrency industry has scored a significant win against the Internal Revenue Service (IRS), revealing an increasing level of support in Congress. This development suggests that crypto lobbyists may have to compromise less as lawmakers push forward with bills on stablecoins and market-structure regulations.
Key Takeaways:
- The crypto industry’s fight against an IRS tax rule has served as a crucial test for future U.S. legislation on digital assets.
- Widespread bipartisan support, including a significant number of Democrats, indicates strong backing for the industry in upcoming legislative debates.
- The increasing influence of crypto-backed political action committees (PACs) is shaping the legislative landscape in Washington.
Congress Sides with Crypto
In a significant political shift, U.S. lawmakers overwhelmingly opposed a recent IRS regulation that sought to classify decentralized finance (DeFi) projects as brokers, subjecting them to extensive tax reporting requirements. With strong bipartisan support, both the House and Senate voted to overturn the rule, signaling a growing alignment with the crypto industry.
Former President Joe Biden’s IRS had finalized this rule before his departure, but the recent Congressional Review Act votes saw 19 Senate Democrats and 76 House Democrats break with their party to reject the measure. This bipartisan stance suggests that crypto-friendly policies may receive broader acceptance in Congress moving forward.
A New Era for Crypto Legislation
For years, crypto lobbyists focused on defending the industry against regulatory crackdowns, often making concessions that diluted their legislative objectives. Now, with a more favorable political climate, the industry can adopt a proactive stance in shaping federal policies.
One of the most imminent legislative efforts involves stablecoin regulations. The House has already reviewed a draft bill, while the Senate Banking Committee is considering its own version. If these efforts advance, they could set the stage for broader regulatory clarity in the crypto market.
Moreover, the industry’s top legislative goal remains a comprehensive market-structure bill that defines clear regulations for cryptocurrency trading and transactions. If passed, this would eliminate regulatory uncertainty and prevent federal agencies from arbitrarily applying outdated laws to digital assets.
Political Influence and Crypto’s Growing Power
The pro-crypto movement has gained momentum, thanks in part to significant financial backing from industry giants. In the 2024 elections, the Fairshake political action committee (PAC), funded by companies such as Coinbase, a16z, and Ripple Labs, invested approximately $139 million in supporting crypto-friendly candidates. The PAC currently holds $116 million, positioning itself as a powerful force in the 2026 election cycle.
This financial influence has made crypto policy a key consideration for lawmakers. Supporting digital asset regulations now offers political advantages, while opposing them could come at a cost in future elections.
Additionally, pro-crypto advocacy groups such as Stand With Crypto have mobilized a growing base of retail investors who demand clear and fair regulations. This grassroots support adds another layer of pressure on policymakers.
The Road Ahead
The industry’s recent victories demonstrate a fundamental shift in how lawmakers view cryptocurrency. With bipartisan backing and strong financial influence, crypto advocates are poised to push for favorable legislation with fewer compromises. As Congress continues to deliberate on stablecoin rules and broader market regulations, the industry stands at a pivotal moment in shaping the future of U.S. crypto policy.
Disclaimer:
This article is for informational purposes only and should not be construed as financial, legal, or investment advice. The cryptocurrency market is highly volatile, and regulatory developments can have significant implications for investors and businesses. Always conduct your own research and consult with a qualified professional before making any financial decisions related to cryptocurrencies.