The US Senate on Wednesday voted 70–28 to approve a resolution that would overturn a Biden-era IRS rule requiring decentralized finance (DeFi) platforms to report user activity—clearing the final congressional hurdle before heading to President Donald Trump’s desk.
The resolution was passed under the Congressional Review Act (CRA), which allows Congress to nullify federal regulations within a set period after they’re finalized.
A similar version cleared the Senate in early March, but procedural rules required the House to originate the bill because of its implications for federal revenue. The House passed its version on March 11, sending it back to the Senate for a final sign-off.
If signed into law, the repeal would block implementation of a controversial broker rule introduced by the IRS in Dec. 2024.
IRS Sought to Treat DeFi Like Traditional Finance—Crypto Leaders Pushed Back
The policy came from the infrastructure bill passed under President Joe Biden. It aimed to classify certain DeFi platforms as brokers. This would make them subject to the same customer reporting rules as traditional financial institutions.
Crypto industry leaders argued that the rule’s language was too vague and technically unworkable. Many DeFi platforms operate without centralized entities. This makes it difficult — if not impossible — for them to follow data collection and reporting rules. The IRS estimated the rule would affect 650 to 875 DeFi brokers. Data collection would begin in 2026, with enforcement scheduled for 2027.
The backlash was swift. Critics warned the rule would drive crypto innovation offshore and saddle DeFi developers with obligations they were structurally incapable of meeting.
In response, senior Trump advisors, including White House crypto policy lead David Sacks, voiced support for scrapping the rule. Sacks publicly stated this month that the administration would recommend the president approve the repeal.
Trump Admin Prioritizes Crypto-Friendly Framework
Though the IRS argued the rule was necessary to improve tax compliance in the digital asset sector, its opponents countered that transparency already exists when users move funds from DeFi protocols to traditional bank accounts, where gains and losses become visible for tax reporting.
The vote marks another step in the Republican-controlled government’s effort to reshape digital asset policy since taking office in January. President Trump has already signed several executive orders aimed at supporting the crypto sector and is expected to make digital assets a focal point of his administration.
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