Leading cryptocurrency firms and organizations have signed a letter urging Congress to overturn a recently finalized tax rule they argue could severely hamper the growth of the decentralized finance (DeFi) sector in the United States.

The governor of the Czech National Bank, Ales Michl, has reiterated his support for potentially incorporating bitcoin into the central bank’s reserves in a post drawing a line between the leading cryptocurrency and the broader market.

Binance.US, American affiliate of leading cryptocurrency exchange Binance, has announced it is reinstating U.S. dollar deposits and withdrawals for its customers after a nearly two-year hiatus.

Top stories in the Crypto Roundup today:

• Crypto Industry Giants Ask Congress to Overturn DeFi Broker Rule
• Czech Central Bank Governor Doubles Down on Bitcoin
• Binance.US Restores U.S. Dollar Deposits and Withdrawals After Two-Year Hiatus

Crypto Industry Giants Ask Congress to Overturn DeFi Broker Rule

Leading cryptocurrency firms and organizations have signed a letter urging Congress to overturn a recently finalized tax rule they argue could severely hamper the growth of the decentralized finance (DeFi) sector in the United States.

In the letter addressed to congressional leaders led by the Blockchain Association, industry giants including Coinbase, a16z, Paradigm, Kraken, Uniswap, Anchorage Digital and dozens of others said that the regulation imposes onerous data collection and reporting requirements on DeFi brokers.

The rule, finalized by the Internal Revenue Service in the final days of the Biden administration, aims to apply similar information-reporting standards to DeFi brokers as those faced by securities brokers and exchanges.

The cryptocurrency industry’s letter argues that the DeFi broker rule “fundamentally misunderstands the technology it attempts to regulate and ignores Congress’s intent.” It also argues that the rule unfairly targets firms in the U.S. as foreign companies wouldn’t have to follow the new rules when serving customers in the country.

The letter calls for the rules to be approved under the Congressional Review Act. A resolution to do so was introduced by Texas Republican Senator Ted Cruz, and industry giants are calling on Congress to support the measure.

Czech Central Bank Governor Doubles Down on Bitcoin

The governor of the Czech National Bank, Ales Michl, has reiterated his support for potentially incorporating bitcoin into the central bank’s reserves in a post drawing a line between the leading cryptocurrency and the broader market.

In a lengthy post, Michl acknowledged the inherent instability of the cryptocurrency space and predicted the market will see “failures and successes.” He added that Bitcoin is a “different story” and that it “should not be lumped together with other crypto assets.”

Last month, Michl submitted a proposal that the Czech National Bank formally study the addition of alternative assets, including BTC, to its balance sheet. The proposal received a green light from the bank’s board, initiating a preliminary analysis phase.

"We central bankers should study it and explore the technology [bitcoin] is built on," Michl stated, emphasizing that studying the cryptocurrency won’t do any harm and will instead “strengthen us.”

Binance.US Restores U.S. Dollar Deposits and Withdrawals After Two-Year Hiatus

Binance.US, American affiliate of leading cryptocurrency exchange Binance, has announced it is reinstating U.S. dollar deposits and withdrawals for its customers after a nearly two-year hiatus.

The move is also bringing back a range of U.S. dollar-based services that include converting between fiat and crypto. The exchange had been operating as a crypto-only platform after it dropped the U.S. dollar in 2023 partly over a lack of support from banking partners.

The reinstatement comes after a period of significant decline in Binance.US’s customer assets over the halt of U.S. dollar services and growing regulatory scrutiny. The move is the latest sign of crypto firms seeing a more crypto-friendly regulatory environment under the Trump administration.

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