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Decentralized finance scored a major win in 2025 as the Senate voted 70-28 to scrap the IRS DeFi broker rule, a heavily criticized crypto holdover from the Biden era. With President Trump expected to sign off, the repeal could transform crypto innovation and reshape US financial regulation.
What Was the IRS DeFi Broker Rule?
The IRS DeFi broker rule sought to pull decentralized platforms into its net, demanding tax reporting on gross crypto transaction proceeds and user data. Critics called it a bureaucratic overreach, pointing out that DeFi exchanges lack the tools to comply. The rule, they argued, threatened to suffocate innovation in a sector built on decentralization.
BREAKING:
TRUMP SET TO BLOCK IRS DEFI BROKER RULE.#XRP’S COMPLIANT INFRASTRUCTURE NOW HAS A MASSIVE REGULATORY EDGE.
THE GATE IS OPEN! pic.twitter.com/SekDquG1Wy
— STEPH IS CRYPTO (@Steph_iscrypto) March 26, 2025
The Senate’s decisive vote to repeal the rule echoes the House’s earlier approval, signaling a major realignment in US crypto policy. But, hey, we’re not complaining!
Backed by President Trump and confirmed by crypto czar David Sacks, the administration also aims to foster a DeFi landscape free from suffocating regulations.
Industry Reactions to the Biden Repeal
The crypto world wasted no time celebrating. Blockchain Association CEO Kristin Smith praised the Senate vote as a key move to eliminate a damaging regulation entirely.
Not everyone is celebrating, though. Critics of the repeal, including Democratic Representative Lloyd Doggett, have raised concerns that removing the IRS DeFi broker rule could create loopholes for tax evasion and illicit activities.
The Road Ahead for DeFi
By targeting overreach in Biden and and his crypto Infrastructure Bill, the repeal carves out breathing room for blockchain innovation. Republicans see this as a way to supercharge DeFi growth by tossing out stifling regulatory hurdles and sticking tax compliance duties where they belong—with centralized exchanges.
Furthermore, many in the industry view it as a win, heralding a more business-friendly environment that promotes innovation without unnecessary red tape.
The repeal of the IRS DeFi broker rule sends a clear signal to the crypto industry that Washington is paying attention to the challenges faced by decentralized platforms.
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Key Takeaways
- Decentralized finance crypto scored a major win in 2025. The US Senate voted 70-28 to scrap the IRS DeFi broker rule, a heavily criticized holdover from the Biden era.
- The rule, many argued, threatened to suffocate innovation in a sector built on decentralization.
- The repeal of the IRS DeFi broker rule sends a clear signal to the crypto industry that Washington is paying attention.
The post IRS DeFi: What You Need to Know About Crypto Taxes appeared first on 99Bitcoins.
