Resolution To Kill IRS DeFi Broker Rule Heads To Trump’s Desk

A resolution to dismantle a controversial Biden-era DeFi broker rule is heading to President Donald Trump’s desk for the axe following Senate approval.

The vote, which passed with a 70-28 majority, marks a significant step toward reducing Internal Revenues Service (IRS) oversight on decentralized platforms.

The DeFi broker rule required decentralized finance platforms to report crypto sales and disclose transaction details, including user information.

Proponents argued it would enhance transparency, but critics warned it could stifle innovation and impose burdensome compliance costs on Web3 platforms.

Senate Approval To Kill DeFi Broker Rule Was Expected

The DeFi broker rule required decentralized platforms to file their gross proceeds from crypto sales as well as include information of the users involved in each of the transactions.

Critics of the DeFi broker rule claimed that it would hit decentralized platforms with too onerous rules and reporting requirements, and subsequently limit innovation in the Web3 space.

The Senate approval was expected because a version of the resolution was passed earlier this month. However, the House made its own version due to Constitutional rules about where budget measures should originate.

Now, the resolution will head to Trump’s desk, where he is expected to bring an end to the DeFi broker rule. The President’s AI and Crypto czar, David Sacks, has already said that Trump supports killing the rule.

The White House is pleased to announce its support for the CRA introduced by @SenTedCruz and @RepMikeCarey to rescind the so-called Broker DeFi Rule, an 11th hour attack on the crypto community by the Biden administration. pic.twitter.com/T7Hxasb4aC

— David Sacks (@davidsacks47) March 4, 2025

Crypto Community Applaud Resolution While Lawmakers Warn Of Exploitation

Leading voices in the crypto community, such as Blockchain Association CEO Kristin Smith, applauded the Senate vote in a statement. 

The following statement is attributed to Blockchain Association CEO @KMSmithDC following today’s second Senate vote to roll back the DeFi broker rule: pic.twitter.com/S632l8sFAb

— Blockchain Association (@BlockchainAssn) March 27, 2025

Similarly, crypto analyst and trader Dan Gambardello told his over 288K followers on X that the resolution is a “huge win for crypto,” adding that it “clears the way for innovation in defi.”  

On the other hand, lawmakers warn that the resolution could make tax evasion and money laundering much easier.

Among the critics is Democratic Representative Lloyd Doggett. He said earlier this month that killing the IRS DeFi broker rule would create a “loophole that would be exploited by wealthy tax cheats, drug traffickers and terrorist financiers.”

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