In a move welcomed by the crypto community, the White House has signaled its strong backing for a congressional resolution. This resolution is aimed at overturning an IRS rule that crypto insiders say places overly burdensome disclosure requirements on DeFi projects. This announcement came Tuesday from Trump’s point person on AI and crypto policy.

The White House is pleased to announce its support for the CRA introduced by @SenTedCruz and @RepMikeCarey to rescind the so-called Broker DeFi Rule, an 11th hour attack on the crypto community by the Biden administration. pic.twitter.com/T7Hxasb4aC

— David Sacks (@davidsacks47) March 4, 2025

The resolution in question, known as S.J. Res. 3, was introduced by Senator Ted Cruz and Representative Mike Carey back on January 21st. It specifically targets the IRS’s “Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales” rule for repeal.

This IRS rule, which was rolled out last December, broadened the definition of a “broker” to encompass software used for processing DeFi transactions. Effectively, this reclassification would mean DeFi projects could be required to report the total amount earned from crypto sales, along with collecting detailed taxpayer information, including identities and complete transaction histories for users.

Unsurprisingly, this rule hasn’t been well-received within the crypto industry. The Blockchain Association, for example, has voiced strong criticism, arguing it misinterprets how DeFi technology actually works and poses a significant threat to innovation in the space.

Senator Cruz’s resolution is a direct response to these concerns. It aims to block the implementation of what many see as overly burdensome reporting requirements on DeFi participants. The goal is to address worries about user privacy, the potential overreach in sharing personal taxpayer data, and to generally foster a more innovation-friendly environment for the digital asset industry in America.

According to the White House statement, “This rule, a last-minute regulation from the previous administration, would not only stifle American innovation but also raise significant privacy red flags regarding the sharing of taxpayers’ personal information. It would also place an unprecedented compliance burden on American DeFi companies.”

Adding further fuel to the fire, the White House indicated that if Congress successfully passes this resolution, the President’s senior advisors would strongly recommend that he sign it into law.

Senate Vote on DeFi Rules Imminent

Sources familiar with the Senate’s schedule have indicated to CoinDesk on Monday that a vote is expected this week on overturning a couple of Biden-era regulations impacting digital assets.

The first regulation in the crosshairs is indeed the IRS rule seeking to expand the definition of “broker” to include DeFi projects.

The second is a rule from the CFPB that would bring large tech companies that process significant volumes of consumer payments through digital wallets and payment apps under stricter regulatory scrutiny, similar to that faced by major US banks.

Both of these resolutions are leveraging the Congressional Review Act, a mechanism that allows Congress to undo recently enacted federal regulations.