More bullish news this week for crypto and crypto taxes in the US!

I have Scott Martin, my own personal crypto tax CPA, here with me again to explain one of the big pieces of news.

First, Eric Trump has confirmed that some top U.S.-based crypto projects, such as XRP and HBAR, will soon benefit from zero capital gains tax, while non-U.S.-based projects will face a 30% capital gains tax. Coingecko added a special category for tracking U.S.-based crypto projects, check it out.

Also, Sen. Ted Cruz plans to introduce a Congressional Review Act resolution next week to overturn a controversial IRS rule requiring certain DeFi brokers to report gross proceeds and provide user data, including names and addresses. The IRS rule, finalized in December, mandates that DeFi brokers file Form 1099s, similar to traditional securities brokers. Critics, including Cruz, argue that the rule stifles innovation, compromises privacy, and complicates tax reporting for the decentralized nature of the crypto industry.

Cruz, an advocate for crypto, believes the regulation targets the DeFi sector, which he views as essential for innovation in the U.S. crypto space. He also stands against CBDCs, championing decentralized alternatives like Bitcoin.

The IRS rule broadly defines "brokers," including non-custodial entities that have access to user information, even if they don’t directly hold assets. This creates significant implementation challenges, particularly within DeFi, where platforms often lack centralized entities to collect and report data. The Congressional Review Act allows Congress to overturn regulations within 60 days of their announcement. With the current Republican-dominated Congress, Cruz's resolution is expected to gain traction, further solidifying his position as a pro-crypto lawmaker.

Let me know what rules you’d like to see added or changed when it comes to crypto tax in the U.S.

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