While the decree has not been issued, members of the Parliamentary Front for the Free Market have already established a course of action directed to block the measure and bring the discussion to Congress. While the first move is to show strong opposition to the measure before being issued, the front would introduce a proposed legislative decree, a legislative draft that seeks to suspend executive orders that lawmakers believe exceed the executive’s authority.
If the proposed legislative decree were to be passed, the issue would have to be re-discussed in Congress, and it could even be repealed.
He assessed:
FAQ What taxation issue is currently arising in Brazil regarding stablecoins? A conflict is developing over a proposed 3.5% tax on stablecoin transactions, aimed at foreign currency movements. What actions is the Brazilian Congress considering against the new decree? Members of the Parliamentary Front for the Free Market are preparing to block the tax decree and propose a legislative measure to suspend executive orders perceived as overreaching. What are the concerns raised about the stablecoin tax by industry experts? Antonio Vale noted that the tax contradicts existing regulations, as Law 14,478/2022 specifies that virtual assets are not considered national or foreign currencies. What stance has the Brazilian Association of Cryptoeconomics taken on the taxation measure? Julia Rosin, President of Abcripto, opposes the decree, claiming it is unconstitutional and promotes plans to take legal action against the government.
