The United States Senate has decided to repeal the controversial rule from the Internal Revenue Service (IRS) concerning the actions of DeFi brokers. In the voting results, 78 senators supported the repeal, while 28 opposed it. This rule required participants in the decentralized financial market to operate similarly to traditional brokers.
This is reported by Finway
According to the requirements, DeFi brokers were obligated to collect data about their users, report on their transactions, and submit 1099 tax forms. The initiative to repeal this rule was put forward by Senator Ted Cruz from Texas and Congressman Mike Carey from Ohio. The bill received support from both chambers of Congress and will soon be sent for the signature of President Donald Trump.
“Repealing this rule is a critically important step to protect innovation in the US and allows developers to continue creating cutting-edge technologies without the burden of unclear and overly broad regulations,” said Amanda Tuminelli, Executive Director of the DeFi Education Fund.
This decision also found support in the White House, where the president’s advisors recommend signing the bill. The rule, proposed at the end of the previous President Joe Biden’s term, faced harsh criticism from the crypto industry. Noted cryptocurrency figure David Sachs described it as “an attack on the crypto community by the Biden administration.”
In 2024, the DeFi Education Fund, along with the Blockchain Association and Texas Blockchain, filed a class-action lawsuit against the IRS, claiming that the new rule threatens innovation in the US and encourages tech companies to relocate abroad.
According to Ron Hammond, Senior Director of Government Relations at the Blockchain Association, this bill will be the first crypto regulatory law signed by Trump upon his return to the presidency.
It is worth noting that the US Securities and Exchange Commission (SEC) previously decided to back away from the rule concerning DeFi brokers.