On Mar. 4, the U.S. Senate released the Congressional Review Act to rescind a Biden-era regulation commonly known as the Broker DeFi Rule. This rule required decentralized finance platforms to share user data with the Internal Revenue Service.The CRA is set to cancel Gross Proceeds Reporting by Brokers that Regularly Provide Services Effectuating Digital Assets Sales (or simply “Broker DeFi Rule”) was created by Sen. Ted Cruz and 13 cosponsors. The voting on the Rule cancellation was scheduled for Mar. 5, but it may occur later due to schedule conflicts.
According to Cruz’s Statement of Administration Policy, the rule expanded the definition of “broker” to include software that provides access to decentralized finance platforms, effectively placing the DeFi sector under IRS oversight.
The Broker DeFi Rule pushed the DeFi platforms to subject users to Know Your Customer politics, report gross proceeds from transactions and other actions on the platforms, and share involved taxpayers’ details with the agency. In CRA, the Broker DeFi Rule is described as a compliance burden imposed on the American DeFi companies. Another problem with the rule is the privacy concerns.
The rule was adopted in the final days of the Biden administration on December 30, 2024, and took effect on January 1, 2025. However, DeFi platforms were not expected to meet compliance obligations until 2027. Cruz and his co-sponsors urged the president to sign the CRA into law, arguing that it would foster innovation and economic growth rather than stifle it.
David Sacks, the White House crypto advisor, voiced support for the CRA on X.
