The US Senate made a significant decision on Wednesday by voting 70-28 to approve a resolution that would overturn a Biden-era IRS rule requiring decentralized finance (DeFi) platforms to report user activity. This resolution has now cleared the final congressional hurdle and is on its way to President Donald Trump’s desk for approval.
This 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 of this resolution was passed by the Senate in early March, but procedural rules required the House to originate the bill due to 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, this repeal would block the implementation of a controversial broker rule introduced by the IRS in December 2024. The rule aimed to classify certain DeFi platforms as brokers, subjecting them to the same customer reporting rules as traditional financial institutions.
Leaders in the crypto industry pushed back against this rule, arguing that its language was too vague and technically unworkable. Many DeFi platforms operate without centralized entities, making it difficult for them to follow data collection and reporting rules. The IRS estimated that the rule would affect 650 to 875 DeFi brokers, with data collection set to begin in 2026 and enforcement scheduled for 2027.
In response to the backlash, senior Trump advisors, including White House crypto policy lead David Sacks, voiced support for scrapping the rule. Sacks publicly stated that the administration would recommend the president approve the repeal.
The vote to repeal this rule 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.
The decision made by the US Senate to overturn the Biden-era IRS rule regarding DeFi platforms is a significant development in the crypto industry. This move reflects the government’s commitment to creating a crypto-friendly framework and supporting innovation in the digital asset sector.