Senate Votes to Overturn IRS Rule Expanding Crypto Broker Definition

The bipartisan resolution challenges a Biden-era IRS rule targeting DeFi protocols, now awaiting a House vote and potential Trump signature.

The U.S. Senate passed a resolution 70-27 to repeal an IRS rule that expanded the definition of 'broker' to include decentralized finance (DeFi) protocols.
The IRS rule, finalized in late 2024, required DeFi protocols to report user data and gross proceeds, raising concerns about privacy and compliance burdens.
The bipartisan effort saw significant support from Democrats, highlighting generational divides within the party on crypto regulation.
The Trump administration has formally endorsed the repeal, with officials citing concerns over innovation stifling and privacy violations.
The resolution now moves to the House of Representatives, where a floor vote is pending before it can be signed into law by President Trump.