Senate Overturns IRS anti-DeFi Rule, House Vote Up Next

Senate Rejects IRS Crypto Rule

The U.S. Senate voted 70-27 to overturn an IRS rule requiring DeFi platforms* to report digital asset transactions. Introduced by Senator Ted Cruz, the resolution now heads to the House of Representatives before reaching President Trump, who is expected to approve it.

White House Supports Repeal

The Trump administration strongly backs the repeal, calling the rule a “midnight regulation” that threatens innovation and privacy. David Sacks, AI & Crypto Czar, labeled it an “attack on the crypto community.”

Industry Reaction

Crypto firms and advocacy groups, including Coinbase, Kraken, Uniswap, and the Blockchain Association, praised the decision. Kristin Smith, CEO of the Blockchain Association, called it a “big day for DeFi” and a sign of growing bipartisan crypto support in Congress.

Next Steps & Potential Impact

If passed by the House, the Congressional Review Act will block the IRS from issuing a similar rule without approval. Supporters see this as a major win for DeFi, while critics warn it could lead to tax compliance issues, with the IRS estimating a $3.9 billion loss over a decade.

DeFi (Decentralized Finance): Blockchain-based financial services that operate without banks or intermediaries.