Sen. Ted Cruz leads the charge against IRS regulations on decentralized finance.
Crypto Firms Fight Against New IRS Rule
The crypto industry is calling on Congress to overturn the IRS’s recently finalized DeFi broker rule, arguing it threatens decentralized finance innovation. Led by the Blockchain Association, 75 major industry players—including Coinbase, a16z, Kraken, and Uniswap—signed a letter urging lawmakers to repeal the policy.
IRS Rule Seeks to Enforce Data Collection
The IRS introduced the DeFi broker rule in late 2024, requiring decentralized finance platforms to report user transactions similarly to securities brokers. Critics argue the rule imposes unfair restrictions on U.S. firms while leaving foreign competitors unaffected.
Sen. Ted Cruz Introduces Resolution for Repeal
Republican Senator Ted Cruz has introduced a resolution under the Congressional Review Act (CRA) to nullify the IRS rule before it takes effect. If successful, the measure would permanently prevent similar regulations from being reintroduced. However, it requires majority approval in both chambers and President Trump’s sign-off.
What’s Next for Crypto Regulation?
With a more crypto-friendly Congress in place after the 2024 elections, the industry sees an opportunity to reshape regulation. However, legislative priorities like the federal budget may compete for attention, leaving the fate of the DeFi broker rule uncertain.
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