Key takeout
- The White House will endorse Congress' resolutions to repeal IRS rules affecting the Defi platform.
- The rules required Defi participants to report detailed transactions and taxpayer information, raising privacy concerns.
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The White House has expressed strong support for a joint resolution overturning IRS rules that impose widespread disclosure requirements on the Defi project, Trump's AI and Crypto Czar announced Tuesday.
The White House is pleased to announce support for the CRA introduced by @sentedcruz and @RepMikeCarey The 11th hour attack by the Biden administration on the crypto community to withdraw the so-called broker debt rules. pic.twitter.com/t7hxasb4ac
– David Sachs (@davidsacks47) March 4, 2025
The resolution known as SJ res. 3 was featured on January 21 by Senators Ted Cruz, Mike Carrey and Mike Carrey. It aims to eliminate “IRS total revenue reporting by brokers who regularly provide services that enable digital assets to be sold.”
The rules issued last December extend the definition of “broker” to include software that handles Defi transactions. Under this definition, the Defi project must report the total revenue from crypto sales and collect taxpayer data, including IDs and transaction history.
The rules are met with strong opposition from the crypto industry. The Blockchain Association criticizes it as a misunderstanding of defi technology and a threat to innovation.
Senator Cruz's actions aim to prevent the implementation of non-burdened information reporting requirements for Defi participants, address concerns about privacy and taxpayer personal information sharing, and support innovation in the US digital asset industry.
“The rules, issued as midnight regulations on the last day of the previous administration, curb US innovation and raise privacy concerns over taxpayer personal information sharing, while also impose an unprecedented burden of compliance on American Defi companies,” according to a White House statement.
The White House has indicated it strongly encourages that senior advisers of the president will sign the law if Congress passes a resolution.
The US Senate plans to vote to revoke IRS rules
The US Senate is expected to vote this week to overturn two Biden-era regulations related to digital assets.
The first is an IRS rule that extends the definition of “broker” to include Defi projects.
The second is the CFPB rules targeting large tech companies that process large amounts of consumer payments via digital wallets and payment apps.
Both resolutions have been brought under the Congressional Review Act, which allows Congress to overturn recent federal regulations.
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