The new deal in the United States has hit hard, and the cryptocurrency market faces a major test!

The U.S. market has just unveiled the veil of night, and a shocking piece of news has exploded in the virtual currency market like thunder — a brand new and stringent regulation has emerged.

The core points of this new regulation are as follows:

1. Brokers must fully disclose transaction information and submit detailed reports to the IRS, covering total transaction income, identities of both parties, asset transfer prices, and basic costs, which undoubtedly gives wings to tax oversight while also presenting unprecedented regulatory challenges for traders.

2. For DeFi protocols, the new regulation clarifies the definition of "digital asset intermediaries" and lists the types of services that need to be reported. Non-custodial wallet providers involved in transaction processes and possessing information may fall under regulatory scope.

3. The regulation also includes exemption clauses, offering leniency to roles such as validators and private key management providers that do not directly engage in transactions.

The regulation clearly defines a three-tier model of the DeFi tech stack and imposes strict information reporting requirements on front-end services, providing a clear framework for DeFi regulation.

With the regulation set to take effect soon, the virtual currency market will undergo profound changes. For investors, this is both a challenge and an opportunity; how to remain calm and invest rationally amidst the tide of regulation has become an urgent question to answer.

An unprecedented major test has already begun, how will the future of the virtual currency market be written? Let us wait and see!

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