What happened?
On March 26, 2025, the U.S. Senate voted 70-28 to pass a resolution that repeals an Internal Revenue Service (IRS) rule from the Biden era called the "DeFi broker rule." This rule required decentralized finance (DeFi) platforms – like decentralized exchanges – to collect and report transaction and taxpayer information to the IRS, similar to traditional financial brokers. Now, after the Senate has approved it, the resolution goes to President Donald Trump, who is expected to sign it into law.
What was this rule?
The IRS rule, finalized in the last days of Joe Biden's administration (December 2023), expanded the definition of "broker" to include DeFi platforms. This meant they had to:
To collect user data (names, addresses, transactions).
To report total sales revenue from cryptocurrency to the IRS.
To comply with "Know Your Customer" (KYC) requirements, which is difficult for DeFi because they operate through automated code without central control.
Critics, including the crypto industry and senators like Ted Cruz, argued that the rule is "unworkable" and stifles innovation because DeFi platforms have no way to collect this data in the way traditional banks or exchanges do.
How did we get here?
Origin: The rule comes from the Infrastructure Investment and Jobs Act of 2021, which aims to increase tax revenue from crypto trading.
Reaction: The crypto community, including groups like the Blockchain Association, attacked it, claiming it violates privacy and pushes business out of the U.S.
The resolution: In January 2025, Senator Ted Cruz and Congressman Mike Carey introduced a resolution under the Congressional Review Act (CRA), a tool that allows Congress to overturn recent regulations. It received support from the Trump administration, which wants to make the U.S. more attractive for crypto.
Voting: The House of Representatives voted on March 11 with 292 against 132 for repeal, and the Senate confirmed it on March 26 with 70-28.
What does the 70-28 vote mean?
Bipartisan success: 70 votes "for" against 28 "against" show strong support from both parties – Republicans and Democrats. This is a rare example of consensus in a divided Congress, especially on crypto issues.
Supermajority: The result exceeds a simple majority, signaling broad acceptance of the idea that the rule is problematic.
What’s next?
Trump's signature: The resolution is now on President Trump's desk. His crypto and AI advisor, David Sacks, stated that Trump supports the repeal, calling the rule a "last-minute attack on crypto" by Biden. If Trump signs by March 28 (as expected), the rule will be officially repealed.
The effect: The IRS will not be able to enforce these requirements on DeFi platforms and will even be blocked from introducing similar rules in the future under the same form.
Why is it important?
For the crypto industry: This is a major victory. DeFi remains free from heavy regulations, which could foster innovation in the U.S. rather than pushing it to other countries.
For users: Privacy is protected – DeFi platforms will not be required to collect personal data.
On policy: It shows that the Trump administration seriously supports crypto, which could lead to even more liberal policies.
Conclusion
The Senate voted 70-28 to repeal the controversial IRS rule that threatened DeFi with burdensome requirements. The ball is now in Trump's court, who is likely to sign it soon, closing one regulatory chapter and opening the door for freer crypto development in the U.S.