President Prepares Pen to Sign Resolution to Repeal IRS Cryptocurrency Rule, If Passed
As the US Senate began the process of debating a resolution to repeal the IRS's recently introduced anti-DeFi rule, the White House expressed support.
Jesse Hamilton | Edited by Nikhilesh De Updated Mar 4, 2025 17:12 UTC Published Mar 4, 2025 17:04 UTC
What you should know:
- The White House is likely ready to support a congressional bill that would overturn the IRS' cryptocurrency rule, which imposes strict disclosure requirements on decentralized finance projects, according to advisers to President Donald Trump.
- The Senate was set to vote Tuesday on Sen. Ted Cruz's resolution to repeal the rule, gaining the support of 70 senators, including a significant number of Democrats, to begin debate.
The White House is hinting at possible approval from President Donald Trump if Congress introduces a resolution to repeal an IRS rule approved just before he returned to office.
Trump's senior advisers are recommending that he sign a resolution to have Congress review the legislation, according to a statement released Tuesday by David Sachs, the president's crypto expert, who noted that “regulations passed in the final days of the previous administration” are an unnecessary burden on decentralized finance (DeFi) in the United States.
The rule “improperly requires certain DeFi participants to report gross proceeds from cryptocurrency sales and other digital asset transactions, including information about the taxpayers involved in those transactions,” according to a statement issued as the U.S. Senate begins considering a resolution that could limit the IRS’s authority over the CRA.
In the opening minutes of what could be a longer debate on Tuesday, a number of Democrats voted to continue Republican Sen. Ted Cruz's resolution, showing some division in the party over whether to begin debating the issue. The initial motion to continue the Senate won the support of a so-called supermajority of senators, 70-28, meaning more than two-thirds of the chamber voted to proceed.
“In a large, bipartisan vote, the Senate voted to continue discussion and debate on the CRA resolution,” said Jennifer Rosenthal, a spokesperson for the DeFi Education Fund. “This is a significant step forward, and we now move on to debate before a full Senate vote.”
For the CRA resolution to reach Trump, it must be approved by both the Senate and the House of Representatives, where the issue has already been discussed at the committee level.
Read More: US Senate Expected to Vote to Repeal IRS Crypto Broker Rule That Threatens DeFi: Source
The CRA allows Congress to overturn recently passed rules by federal regulators, creating a tight time frame for lawmakers to push back against the previous administration's actions.
Senator Cynthia Lummis, an industry advocate and chair of the House Digital Assets Subcommittee, said in a post on social media platform X that “these strict federal regulations threaten to push American crypto entrepreneurs overseas at a time when we should be growing this industry at home.”
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