The Trump administration has expressed support for congressional efforts to repeal the IRS rule that expands the definition of a “broker” to include participants in decentralized finance (DeFi) platforms.
David Sacks, White House advisor on cryptocurrency and artificial intelligence, stated that senior presidential advisors would recommend signing Senate Joint Resolution 3 (S.J. Res. 3) if it passes through Congress.
The resolution, spearheaded by Senator Ted Cruz, aims to overturn the rule introduced during the final days of the previous administration. Cruz argued that the regulation stifles innovation in the crypto sector and urged Congress to act swiftly.
The Senate has already passed the resolution with a strong bipartisan majority of 70–27. It now moves to the House of Representatives for further consideration.
Critics of the rule argue that it imposes burdensome requirements on software developers and others who do not perform traditional broker functions, potentially hindering innovation in the DeFi space. Supporters, on the other hand, emphasize the need for tax transparency and preventing tax evasion in the rapidly growing digital asset sector.
If fully approved and signed into law, the repeal would mark a significant step toward balancing regulation with innovation in the U.S. crypto landscape.
