Senate Overwhelmingly Votes to Repeal IRS's "DeFi Broker Rule"

The U.S. Senate has passed the "Repeal of the IRS DeFi Broker Reporting Provision" bill, pending approval by the House of Representatives. This move aims to overturn the so-called "DeFi Broker Rule," a last-minute attack on the crypto community by the Biden administration, related to the Internal Revenue Service's (IRS) "broker rule" concerning DeFi.

The resolution, proposed by Senator Ted Cruz and Congressman Mike Carey, was passed by a vote of 70 to 27. It seeks to completely repeal the rule and prohibit the IRS from implementing similar policies in the future. The White House has stated that President Trump may promptly sign this resolution once it is approved by the House of Representatives.

The DeFi Broker Rule is a regulatory framework for intermediaries in decentralized finance (DeFi), such as exchanges and lending protocols. Its key aspects include anti-money laundering (AML), know-your-customer (KYC) procedures, smart contract audits, fund security, and transparency requirements. The aim is to ensure compliance, user protection, and risk management in the DeFi space.