Crypto Industry Challenges IRS DeFi Rule

Crypto Industry Urges Congress to Overturn DeFi Broker Rule

• The IRS implemented a digital assets broker rule between Christmas and New Year’s.
• This rule imposes reporting demands on DeFi brokers similar to those on securities brokers.
• Senator Ted Cruz introduced a resolution to repeal the rule using the Congressional Review Act (CRA).
• The Blockchain Association, Coinbase, a16z, and others signed a letter urging Congress to support Cruz’s measure.
• The industry argues the rule unfairly targets U.S. firms compared to foreign competitors.

Crypto industry leaders are pushing Congress to overturn an IRS broker rule they argue could harm U.S. DeFi innovation by imposing unfair reporting requirements. They support Senator Ted Cruz’s resolution under the CRA to repeal this regulation.