Mar 25, 2025 - Business

Senate likely to send repeal of IRS DeFi broker rule to White House

Brady Dale

Illustration of the U.S. Capitol dome looking at itself in a mirror. — Illustration: Brendan Lynch/Axios

The Senate looks set to vote again on repealing the Internal Revenue Service's broker rule, which it updated at the end of 2024, a Republican Senate staffer tells Axios.

The big picture: The move fits into the current administration's larger goal of making the U.S. friendly to the nascent crypto industry.

State of play: The Senate already passed a similar CRA resolution on March 4 by a vote of 70 to 27. Due to the Constitutional requirement about the origination of budget measures, the House passed a new version in a 292-131 vote, which was then sent to the upper chamber.

This time, a passing vote in the Senate would send the resolution to the White House for President Trump's signature.

Context: Critics of the revised IRS rule argue it would discourage innovation.

Written in an attempt to bring in more tax revenue from crypto trading, the IRS expanded the reach of its broker reporting requirements.
Its language seemed to extend the definition of a broker to, for example, automated market makers — exchanges that run purely via code on blockchains.
Without any humans in the loop or any visibility into who its users are, reporting for such exchanges isn't feasible, industry advocates argue.

What we're watching: The staffer said that "if all goes as planned" the measure could be signed this week.

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Senate likely to send repeal of IRS DeFi broker rule to White House

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