- Senate votes 70-28 to repeal controversial DeFi tax rule, sending it to Trump for final approval.
- Crypto advocacy groups celebrate the repeal, hoping for the permanent removal of the rule.
- DeFi platforms are relieved from new IRS reporting rules, easing regulatory pressure.
The U.S. Senate voted to repeal a controversial tax rule targeting decentralized finance (DeFi) platforms with a final vote of 70-28. The rule, introduced under the Biden administration, required DeFi platforms to report crypto transactions to the IRS, mirroring the obligations of traditional financial institutions. This decision marks an important step in reshaping how digital assets are regulated in the U.S. The repeal measure now moves to President Donald Trump’s desk for approval, with sources close to the White House suggesting he is expected to sign it into law.
3/ Next up? The CRA heads to @realDonaldTrump for signature – a milestone that would officially roll back the IRS’ misguided “DeFi Broker” rulemaking, and formally protect DeFi innovators in the United States.
— DeFi Education Fund (@fund_defi) March 27, 2025
Crypto advocacy organizations, including the Blockchain Association, have applauded the Senate’s vote to overturn the tax rule. Kristin Smith, CEO of the Blockchain Association, expressed her gratitude to lawmakers such as Senator Ted Cruz and Representative Mike Carey, who supported the repeal.
Smith emphasized that their leadership protects the future of digital assets in the U.S. She expressed hope for Trump’s final approval to permanently eliminate the rule, which many believed could have stifled DeFi innovation and slowed the industry’s growth.
Senate Repeals DeFi Tax Rule, Easing Pressure on Crypto Platforms
Under the proposed rule implementation certain DeFi industry members would have to follow operation procedures like traditional securities brokerages. The entities required to fulfill the mandate needed to gather user trading information and file Form 1099 reports for user non-employment income as well as gambling winnings and both rents and royalties.
The U.S. Treasury Department confirmed that front-end service providers who have direct customer interactions such as decentralized protocol website operators, received primary focus. Opponents, including the administration of President Donald Trump, found fault with this regulation as an improper extension of authority while expressing worries about personal information protection. The White House declared the regulation to be a “midnight regulation” through its March 4 statement about the rule enacted in the last days of the fomer administration.
The Senate approved the measure which will move forward to Trump for his final signature. The changing political consensus about cryptocurrency regulation becomes evident through this choice which points toward increasing support for the Crypto field in Washington. The latest legislative decision provides relief to DeFi platforms which can avoid implementing IRS reporting rules that the sector considered fatal. Digital assets gain more favorable acceptance after this repeal which could enhance U.S. market innovation and adoption.
Highlighted Crypto News Today:
HYPE Token Drops 10% as Hyperliquid Struggles with Market Backlash
