A major tax rule targeting decentralized finance (DeFi) might just find itself in the dustbin of history, thanks to U.S. President Donald Trump. 🚀 
Donald Trump, the former president and a man of many talents, is expected to sign a resolution repealing the rule. The rule, which was introduced by the Biden administration, required DeFi platforms to report crypto transactions to the IRS, just like traditional banks. 🏦 🛠
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
The Senate voted 70-28 in favor of repealing the rule, following a similar decision by the House earlier this month. The legislation had been widely criticized by the crypto community for being impractical and harmful to innovation. Supporters of the repeal argue that DeFi platforms operate in a completely different way from centralized financial entities and should not be subjected to the same reporting rules. 🗳️ 💡
Critics Say the Rule Was Unworkable
Crypto advocacy groups, including the Blockchain Association, hailed the Senate’s decision, calling it a victory for DeFi innovation.
Thank you, @SenTedCruz, @RepMikeCarey and all of the members who voted to strike down this rule.
Your leadership will ensure American innovation in crypto and DeFi thrives.
We look forward to President @realDonaldTrump’s final signature to take this rule off the books for good.
— Kristin Smith (@KMSmithDC) March 27, 2025
Kristin Smith, CEO of the Blockchain Association, expressed her gratitude to Senator Ted Cruz, Representative Mike Carey, and other lawmakers for voting to overturn a rule that could have stifled crypto and DeFi innovation. She emphasized that their leadership helps secure the future of digital assets in the U.S. and is now looking forward to Donald Trump’s final approval to scrap it permanently. 🧑💼 💻
However, some experts argued that the rule was unrealistic and would have placed excessive burdens on decentralized platforms, making compliance nearly impossible. 🚫 👎
However, opponents of the repeal, such as Democratic Representative Lloyd Doggett, warned that removing the rule could open doors for tax evasion and illicit financial activities. He claimed that keeping the regulation in place would have helped prevent wealthy investors from exploiting tax loopholes. 🚧 💸
What’s Next?
With Trump expected to approve the repeal, the rule will soon be off the books. The decision highlights the shifting political landscape around crypto regulation as the industry gains stronger support in Washington. For now, DeFi platforms can breathe a sigh of relief, knowing they won’t have to comply with the IRS reporting requirements that many saw as an existential threat to the sector. 🌟 🌱
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2025-03-27 08:38