Catenaa, Friday, March 28, 2025-The US Senate has voted to repeal a controversial IRS rule on crypto taxation, with President Donald Trump expected to sign the measure, lawmakers said Wednesday.
The resolution, introduced by Sen. Ted Cruz, R-Texas, and Rep. Mike Carey, R-Ohio, seeks to roll back reporting requirements imposed on decentralized finance (DeFi) entities. Critics argued the rule could stifle US blockchain innovation and push the industry offshore.
The DeFi Education Fund, which challenged the rule in court, hailed the repeal as a victory for developers and emerging technologies.
“This is a crucial step toward protecting US innovation,” said Amanda Tuminelli, the group’s executive director.
Republicans backed the repeal, arguing that overreach from regulators threatens the crypto industry. Some Democrats opposed it, with Rep. Richard Neal, D-Mass., claiming it weakens IRS enforcement.
White House Crypto Czar David Sacks confirmed Trump’s advisors plan to recommend he sign the repeal, making it the first crypto-related bill of his term.
