White House Backs Repeal of IRS's DeFi Broker Rule

The White House has announced its support for rescinding the Internal Revenue Service's (IRS) decentralized finance (DeFi) broker rule, which was set to be implemented in 2027. David Sacks, the AI and crypto czar in the Trump administration, made the announcement on March 4 via a X post.

Sacks stated that the administration supports the resolutions introduced by Texas Senator Ted Cruz and Ohio Representative Mike Carey under the Congressional Review Act. These resolutions aim to repeal a regulatory rule that expands the definition of a "broker" to include software providers that enable access to DeFi protocols. According to Sacks, senior advisers to former President Donald Trump would recommend he sign the joint resolution S.J. Res. 3 into law if it were sent to his desk by Congress.

This development comes as part of a broader effort to address regulatory concerns surrounding the rapidly evolving DeFi landscape. The rescinding of the broker rule could have significant implications for the industry, potentially opening up new opportunities for innovation and growth.

The White House's support for rescinding the DeFi broker rule highlights the administration's recognition of the potential of decentralized finance and its commitment to fostering a regulatory environment that encourages responsible innovation. As the industry continues to evolve, stakeholders will be watching closely to see how these developments unfold and how they may impact the future of DeFi.