The U.S. Senate has passed the Congressional Review Act (CRA), a resolution aimed at repealing an Internal Revenue Service (IRS) rule that would have imposed stringent tax reporting requirements on decentralized finance (DeFi) platforms.
The resolution, introduced by Representative Mike Carey last year, passed the U.S. Senate on March 26 with a bipartisan vote of 70-28. Now it will be sent to President Donald Trump for his signature.
The USA Goes Crypto!
There’s widespread expectation that Trump will sign the resolution into law, given his pro-crypto stance. According to David Sacks, Trump’s crypto tsar, the White House strongly supports the resolution.
In a statement shared earlier this month, the administration criticized the Biden-era rule, arguing it would stifle American innovation, compromise taxpayer privacy, and impose an excessive compliance burden on the decentralized finance sector.
The administration’s support for the Act is part of its ongoing efforts to foster a pro-innovation environment for the American people.
1/🚨 New “Broker” CRA Milestone 🚨
With *another* bipartisan super majority of 70 Senators, Congress has repealed the IRS “broker” rule requiring DeFi front-ends to KYC users – ultimately reaffirming that Americans should have the freedom to decide how they transact. pic.twitter.com/AOZttE9Sio
— DeFi Education Fund (@fund_defi) March 27, 2025
In December 2024, the IRS finalized regulations that expanded the definition of “brokers” to include DeFi platforms that provide trading front-end services. DeFi businesses that fall under this classification must report digital asset transactions to the IRS, similar to traditional securities brokers.
The rules have faced intense criticism from the cryptocurrency industry. By the end of the year, the Blockchain Association, the DeFi Education Fund, and the Texas Blockchain Council jointly filed a lawsuit in the U.S. District Court for the Northern District of Texas, seeking to vacate the IRS’s controversial rules.
The lawsuit argues that the rule exceeds the IRS’s statutory authority, violates the Administrative Procedure Act (APA), and raises constitutional concerns.
The plaintiffs contend that the rule fundamentally misunderstands the decentralized nature of DeFi technology and would impose unrealistic compliance burdens on DeFi platforms.
If the CRA measure is signed into law, it would prevent the IRS rule from taking effect, allowing DeFi platforms to operate without the proposed reporting requirements, which were set to begin in 2027.
Other Bills Advance in Congress
The U.S. is entering a pro-crypto era under the Trump administration, and lawmakers are responding with several relevant bills and initiatives. Alongside the CRA, the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 (GENIUS Act) is also gaining considerable support.
The GENIUS Act, introduced by Senator Bill Hagerty earlier this year and co-sponsored by several other senators, including Tim Scott and Cynthia Lummis, would establish a comprehensive regulatory framework for the issuance and regulation of payment stablecoins in the U.S.
Under the proposed legislation, a payment stablecoin is defined as a digital asset designed for use as a means of payment or settlement, which maintains a stable value relative to a fixed amount of monetary value, such as the U.S. dollar.
The bill passed the Senate Banking Committee on March 13. It will need to pass the full Senate and be reconciled with a similar House bill, the STABLE Act, before it can become law.
Senator Lummis, a known Bitcoin advocate, also reintroduced the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act in the 119th Congress. This is one of the most anticipated bills as it would establish a Strategic Bitcoin Reserve through government acquisition.
The bill proposes that the U.S. government buy 1 million Bitcoins over a period of five years and hold them for 20 years. This would establish Bitcoin as a strategic national asset, positioning it as a long-term store of value and economic hedge.
The legislation will strengthen President Trump’s executive order to form a Strategic Bitcoin Reserve, currently with seized Bitcoin. The potential drawback of the order is that it could be overturned by a future president who adopts a different crypto stance.