Crypto Chronicles: China And America Continues

1-Trump enacts IRS DeFi broker regulation repeal.

Representative Mike Carey (R-Ohio), who proposed the measure with Sen. Ted Cruz (R-Texas), said in an Apr. 10 news release that the president's signing of the law is a big legislative triumph for the crypto sector and its proponents in Congress.

The measure repeals an IRS DeFi broker regulation from 2024 that broadened “broker” to encompass decentralized finance platforms and other non-custodial digital asset services. The regulation would have compelled DeFi platforms, wallet providers, and front-end protocol interfaces to gather user data and report crypto transactions using Form 1099.

Representative Carey remarked, “This is the first cryptocurrency bill ever signed into law and the first tax-related Congressional Review Act of Disapproval signed into law.” He said the regulation “needlessly hindered American innovation” and would have swamped the IRS with compliance demands it cannot meet.

2-Markets rise on Trump's tariff halt, but Bitcoin may not.

President Donald Trump unexpectedly reversed one of his most hardline trade measures on Truth Social on April 9.

He declared a 90-day deferral of reciprocal tariffs on over 75 countries, replacing them with a 10% flat rate except for China, in a quick but powerful statement.

The decision followed a week of market turmoil caused by first tariff rises of 11% to 50% across a broad spectrum of U.S. trade partners.

Political pressure, financial market volatility, and diplomatic disquiet may have affected the White House's decision. Several trade partners worried that the sudden tariff increase may cause a U.S. recession.

Treasury Secretary Scott Bessent says the tariffs were always strategic “leverage.” He noticed that they had fulfilled their function.

Japan and the EU are eager to negotiate trade with Washington, and over 70 nations have started talks.

China is an exception among countries granted a temporary respite. Instead of relaxing, the Trump administration boosted Chinese tariffs from 104% to 125%.

As retaliation, China imposed an 84% tax on American goods. With neither side backing down, the U.S.-China trade war looks to be entrenching. Citi lowered its 2025 China GDP growth prediction from 4.7% to 4.2%, citing increased trade uncertainties.

3-New FSA framework separates crypto into two categories in Japan

Coinpost reported that the Financial Services Agency has requested public input on a discussion paper titled “Verification of the state of the system related to crypto assets.” The discussion paper will allow the financial watchdog to receive feedback on the proposed cryptocurrency framework until May 10, 2025.

Based on fund distribution, the report divides crypto assets into two groups for regulation. Type 1 includes crypto assets utilized for company or parent project financing. Altcoins from new projects require community financing to flourish.

Type 2 offers more decentralized or established crypto assets. Bitcoin and Ethereum are type 2 cryptocurrencies that do not issue tokens for commerce. These coins are “non-fundraising or non-business crypto.”

The crypto rules for virtual assets vary per category, based on their features. Japan's FSA said authorities must force projects to clarify what Type 1 crypto assets would be utilized for to potential traders.

4-Helium developer Nova Labs' unregistered securities complaint dropped by SEC.

Helium declared the victory “a major win for Helium and The People’s Network” in a Medium blog post on April 11. The dismissal clarifies the regulatory position of HNT, IOT, and MOBILE, its major coins. The SEC has dismissed the case with prejudice, meaning it cannot pursue the same claims again.

Helium said the agency's new leadership has clarified crypto infrastructure initiatives, closing a chapter of ambiguity for the Decentralized Physical Infrastructure Network industry. Helium said this ruling clarifies that selling hardware and giving tokens to expand networks are not securities under U.S. law.

References

https://crypto.news/japans-fsa-introduces-new-framework-that-divides-crypto-into-two-categories/

https://crypto.news/trump-tariff-pause-bitcoin-china-crypto-rebound/

https://crypto.news/trump-signs-bill-revoking-controversial-irs-defi-broker-rule-into-law/

https://crypto.news/u-s-sec-drops-unregistered-securities-case-against-helium-developer-nova-labs/