TechFlow news, March 3 — According to CoinDesk, the U.S. Senate plans to vote as early as this week to overturn the Internal Revenue Service's (IRS) crypto broker rules targeting decentralized finance (DeFi) projects. Sources indicate that Republican senators are pushing to repeal two federal regulations related to digital assets: the IRS's DeFi disclosure rule and a Consumer Financial Protection Bureau (CFPB) rule concerning payment apps and digital wallets.
Republican Senator Ted Cruz of Texas introduced a Congressional Review Act (CRA) resolution to nullify the IRS rule. He stated, "The Biden administration’s midnight-rule on decentralized finance will directly and immediately harm U.S. crypto innovation and push development overseas. The Senate will vote on my resolution this week, and I am confident it will pass."
Senate Majority Leader John Thune said in a statement, "The Biden administration has gone to great lengths to stifle American financial innovation and risks driving digital asset firms overseas. The Senate is working to roll back these burdensome regulations one by one, restoring financial freedom for the American people."
Previously, in December 2024, the IRS expanded the definition of broker to require DeFi platforms to disclose certain tax-related information, sparking strong opposition from the crypto industry. If the Senate vote succeeds, the repeal would still require approval from the House of Representatives and the President’s signature to take effect.
