The IRS broker rule would have expanded existing reporting requirements by classifying DeFi platforms—such as decentralized exchanges and other software providers—as brokers. This meant that these platforms would have been obligated to collect and report detailed user transaction data, including gross proceeds from crypto sales, to the Internal Revenue Service. Critics argued that the rule was not only impractical for platforms that never hold or control user funds, but it also posed serious privacy concerns and would have imposed an unworkable compliance burden on an industry built on decentralization.
The resolution to cancel the IRS rule passed in the House with overwhelming bipartisan support. Republican Representative Mike Carey, who submitted the repeal motion, decried the rule as a "massive government overreach" that would have invaded the privacy of tens of millions of Americans and stifled the burgeoning DeFi sector. House Financial Services Committee Chairman French Hill echoed this sentiment, warning that the rule could force digital asset development offshore—a risk that could undermine U.S. leadership in digital innovation.
The vote comes on the heels of a similar Senate decision, which passed a resolution by a 70–27 margin. With both chambers of Congress now aligned on the issue, the resolution heads back to the Senate for a final vote before being sent to President Donald Trump for approval.
Adding to the narrative of regulatory relief, David Sacks—Trump’s crypto czar and a vocal advocate for a friendlier digital asset policy—expressed strong support for the repeal. In a statement posted on social media, Sacks condemned the IRS rule as an "11th hour attack on the crypto community" orchestrated by the previous administration. He emphasized that the rule would have not only stifled American innovation but also raised significant privacy concerns by compelling platforms to share taxpayers’ personal information with the IRS. Sacks noted that senior advisers to the White House were prepared to recommend signing the resolution once it reached the President’s desk, signaling a clear commitment to fostering an environment where U.S. crypto companies can flourish without onerous regulatory constraints.
Although the House vote marks a major milestone, the repeal is not yet law. The resolution now awaits another Senate vote before it can be sent to President Trump for final approval. If enacted, the repeal will permanently bar the IRS from imposing a similar rule in the future, offering a significant regulatory reprieve for the crypto industry.
This decision not only highlights the growing bipartisan consensus around crypto-friendly policies but also serves as a clarion call for further legislative reforms that balance the need for transparency with the imperative of technological innovation. Industry experts and advocates are hopeful that this move will set the stage for a more nuanced regulatory framework that truly understands the decentralized nature of blockchain technology.
The U.S. House’s historic vote to repeal the IRS DeFi broker rule stands as a powerful affirmation of the nation's commitment to fostering digital innovation while protecting the privacy of millions. With strong support from both sides of the aisle and backing from key industry figures like David Sacks, the path is now clear for a final Senate vote and, eventually, presidential approval. As the crypto industry awaits this next crucial step, the message is unmistakable: the future of American innovation in digital assets is bright, and regulatory frameworks must evolve to nurture rather than hinder progress.
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