Key dealers
- The White House supports a congressional resolution to cancel an IRS rule that affects Defi platforms.
- The rule required the Defi participants to report detailed information about transaction and taxpayers and caused privacy problems.
The White House has expressed strong support for a joint resolution to reverse an IRS rule that sets extensive information requirements on Defi projects, Trump’s AI and Crypto Czar announced on Tuesday.
White House is pleased to announce its support to CRA that is introduced by @SentedCruz and @Repmikecarey To recall the so-called broker the Defi rule, an 11th hour attack on the crypto community of the Biden administration. pic.twitter.com/t7hxasb4ac
– David Sacks (@Davidsacks47) March 4, 2025
The resolution, known as SJ Res. 3was introduced by Senator Ted Cruz and representative Mike Carey on January 21. It aims to cancel the IRS’s “gross revenue reporting brokers that regularly provide services that affect digital asset sales.”
The rule, which was issued in December last year, extends the definition of “brokers” to include software that deals with Defi transactions. According to this definition, Defi projects would have to report gross revenue from crypto sales and collect taxpayers’ information, including identities and transaction stories.
The rule has been fulfilled with strong resistance from the crypto industry. Blockchain Association has criticized it as an incorrect interpretation of defi technology and a threat to innovation.
Senator Cruz’s action aims to prevent the implementation of burdensome information reporting requirements on Defi participants, and deals with concern about integrity and sharing personal information about taxpayers’ personal information, as well as supporting innovation in the US digital asset industry.
“This rule, which was issued as a midnight regulation during the last days of the former administration, would stifle US innovation and raise the privacy problems over the division of taxpayers’ personal information, while at the same time as an unmatched survival burden because of the white house’s statement.
The White House indicated that if Congress takes the resolution, the president’s senior adviser would highly recommend that it be signed by law.
The US Senate would vote to recall the IRS Defi rules
The US Senate will vote this week to turn two Biden-ERA regulations related to digital assets, a person who is familiar with the Senate’s planning to Coindesk told Monday.
The first is the IRS rule that extends the definition of “brokers” to Defi projects.
The second is a CFPB rule that would submit to large technology companies that deal with high volumes of consumer payments through digital wallets and payment apps for stricter regulation similar to large US banks.
Both resolutions are developed according to the Congessional Review Act, which allows Congress to reverse the latest federal regulations.
