Catenaa, Wednesday, March 05, 2025-The US Senate has voted to overturn a controversial tax reporting rule imposed by the Internal Revenue Service (IRS), which required brokers to report gross proceeds from digital asset sales.
The resolution, introduced under the Congressional Review Act, passed with strong bipartisan support by a vote of 70-27.
Many Republicans rallied against the rule, with several Democrats crossing party lines to support the repeal.
Kristin Smith, CEO of the Blockchain Association, called it “absolutely mind-blowing” to see such widespread Democratic opposition to a rule issued during the Biden administration.
The IRS rule, finalized in December 2024, expanded the definition of “broker” to include decentralized finance (DeFi) protocols. Critics of the rule argued that it would impose burdensome compliance requirements on DeFi protocols and force them to register as traditional financial brokers, potentially infringing on user privacy.
The resolution now heads to the House for approval before being sent to President Donald Trump’s desk for final signing. The Trump administration has strongly backed the repeal effort, with crypto policy chief David Sacks claiming the rule would stifle innovation and raise privacy concerns.
The DeFi Education Fund, a Washington-based advocacy group, applauded the Senate’s decision, emphasizing the need for clear regulations that protect innovation and user privacy in the digital asset space.
