White House Backs CRA Against IRS

White House Backs CRA to Revoke IRS DeFi Broker Rule

• The White House supports a Congressional Review Act (CRA) resolution to overturn the IRS’s DeFi broker rule.
• The rule, finalized in 2024, classifies DeFi developers as brokers, requiring them to report user transaction data.
• Senator Ted Cruz and Representative Mike Carey introduced the resolution, needing a simple majority in Congress.
• Critics argue the rule could stifle innovation by imposing impractical reporting requirements on decentralized platforms.
• The Senate vote on the CRA resolution was initially scheduled for March 5 but may be delayed due to the State of the Union address.

The White House’s support for repealing the IRS DeFi broker rule indicates a shift toward fostering innovation-friendly digital asset regulations. The CRA resolution aims to prevent broad classification of developers as brokers under tax laws.