U.S. Senate to Vote on Overturning IRS Crypto Broker Rules Impacting DeFi

In Brief

The U.S. Senate may vote this week on repealing the IRS crypto broker rules, which require DeFi projects to disclose strict tax information.

Senator Ted Cruz has introduced a motion under the Congressional Review Act (CRA) to revoke the provision, following industry backlash.

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The U.S. Senate is expected to vote this week on a repeal effort targeting IRS crypto broker rules, which have been criticized for stifling DeFi development. These regulations mandate Decentralized Finance (DeFi) platforms to report detailed tax-related information—a requirement the industry argues is unworkable and harmful to innovation.

Senator Ted Cruz has taken the lead in challenging the rule, using the Congressional Review Act (CRA) to attempt its revocation. Meanwhile, a U.S. House committee has already begun advancing its repeal, signaling strong resistance from lawmakers advocating for a pro-crypto regulatory environment.

A separate IRS rule affecting digital payment apps is also under scrutiny, with lawmakers pushing for its repeal alongside the DeFi tax reporting regulations. If overturned, the decision could provide regulatory relief for the U.S. crypto sector and reduce compliance burdens for DeFi platforms.

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