On Wednesday, U.S. Senate approved a resolution that would overturn a rule of the Internal Revenue Service requiring brokers report gross profits from sales of digital assets. It was a victory for both President Donald Trump’s administration, and those in crypto.
This measure was introduced as part of the Congressional Review Act and passed with a vote of 70 to 27. Republicans were largely against this rule, while many Democrats crossed the aisle for support.
It’s “absolutely mind-blowing” Kristin Smit, the CEO of the Blockchain Association in Washington, an advocacy group for crypto, revealed how many Democrats would be willing to reverse a Biden Administration rule. Decrypt.
It is now up to a House version of the resolution to pass through a vote on its floor before it reaches Trump for his final approval.
In December 2024 in the last few weeks of Biden’s administration, IRS finalized a rule that significantly expanded the meaning of “a”. “broker” Include decentralized financial protocols
Critics of the industry argued that this measure would place impossible compliance burdens upon permissionless financial systems. It also forced DeFi protocols register as financial brokers and required all U.S. DeFi Users to link their on-chain address to their identity.
"Today marks the first of many historic milestones in the regulation of digital assets in the United States in this next chapter—as we move towards the enactment of the first standalone crypto legislation," A spokesperson from the DeFi Education Fund told Decrypt.
"The DeFi Education Fund applauds the bipartisan supermajority of Senators who recognized the need to push back against regulatory overreach to protect Americans’ freedom to choose how they transact and American innovation."
Trump Administration Formally backed David Sacks said that the White House was behind the effort to repeal the crypto law on Tuesday. “strongly supports” Resolution.
“This rule, issued as a midnight regulation in the final days of the previous administration, would stifle American innovation and raise privacy concerns over the sharing of taxpayers’ personal information, while imposing an unprecedented compliance burden on American DeFi companies,” Sacks made the following statement.
Sander Leutz also contributed to the reporting.