U.S. Congress Votes to Overturn IRS Crypto Tax Rule – Trump Expected to Sign
News 2025-03-28

Bipartisan Support to Repeal Biden-Era IRS Crypto Regulation

On March 27, the U.S. Congress voted overwhelmingly (70-28) to repeal an IRS crypto tax regulation introduced in the final days of the Biden administration. The measure will now be sent to former President Donald Trump, who is expected to sign it into law.

🔹 Key Provisions of the Repealed IRS Rule:

  • Required DeFi platforms to report user transaction data like traditional brokers.
  • Mandated businesses to issue 1099 tax forms for certain DeFi transactions.
  • Targeted platforms offering DeFi user interfaces, not underlying protocols.

The rule faced strong opposition from the crypto industry, with critics arguing it violated user privacy. The DeFi Education Fund even sued the IRS shortly after the rule’s implementation.

Congressional Process & Bipartisan Backing

The repeal was spearheaded by Republican Senator Ted Cruz and Representative Mike Carey and swiftly passed through both the Senate and House of Representatives.

🔹 Key Votes & Developments:

✅ Senate Vote (March 27) – Passed 70-28, with some Democrats supporting.

✅ House Approval – Followed suit, aligning with Senate decision.

✅ Bipartisan Support – Even Senate Democratic Leader Chuck Schumer voted in favor.

✅ Fast-Track to the President – Since it’s tied to budget legislation, it can go directly for Trump’s signature.

DeFi Industry Celebrates, Warns Against Overregulation

🚀 Amanda Tuminelli, CEO of the DeFi Education Fund, hailed the decision:

📢 "This is a crucial step in protecting U.S. innovation and preventing developers from being crushed by excessive regulation."

📌 Industry concerns:

  • Failure to repeal would push DeFi innovation out of the U.S.
  • Overregulation could drive crypto businesses offshore, weakening U.S. competitiveness.

Democrats Split: Some Argue It Weakens IRS Enforcement

While some Democrats supported the repeal, others criticized it as an attempt to weaken the IRS.

🔹 Rep. Richard Neal (D-MA) stated:

📢 "Republicans have been slashing IRS funding for years—now they want to strip away its enforcement tools."

Trump Administration Expected to Sign First Crypto Bill

📌 Trump’s stance:

  • Strongly opposed the Biden-era rule, calling it a "midnight regulation."
  • Warned of privacy risks due to forced DeFi reporting.
  • March 4 statement: Criticized the rule as "last-minute overreach by Biden."

🚀 David Sacks ("AI Crypto Czar") confirmed that Trump’s senior advisors are pushing him to sign the repeal.

📢 Ron Hammond, Blockchain Association:

✅ "This will be the first crypto-related law signed under the Trump administration."

What’s Next for U.S. Crypto Regulations?

With Trump likely to approve the repeal, this marks a major win for the crypto industry and sets the stage for friendlier regulations under his administration. However, future tax and compliance debates are far from over.

🔥 Will this signal a new era of pro-crypto policies in the U.S.? Stay tuned!