- Donald Trump backs a resolution to repeal Biden’s controversial Broker DeFi Rule.
- The rule imposed strict reporting on DeFi platforms, causing industry-wide opposition.
- If the act is passed, the repeal would block similar future regulations without Congress.
The Trump administration has formally announced its support for a Congressional Review Act (CRA). The resolution is aimed at revoking the controversial “Broker DeFi Rule” implemented during the final days of the Biden administration. The announcement was shared by White House AI & David Sacks on X.
“The White House is pleased to announce its support for the CRA introduced by @SenTedCruz and @RepMikeCarey to rescind the so-called Broker DeFi Rule, an 11th-hour attack on the crypto community by the Biden administration,” Sacks stated. In a March 4 Statement of Administration Policy, the Office of Management and Budget shared the administration’s position. The announcement mentioned that the rule “inappropriately requires certain DeFi participants to report gross proceeds from cryptocurrency sales and other digital asset transactions, including data about the taxpayers involved.”
The contested regulation was issued by the Internal Revenue Service (IRS) on December 30, 2024. It expanded the definition of “broker” to include software that allows users to access decentralized finance protocol. This subjected DeFi platforms to report requirements typically applied to traditional financial intermediaries.
Senator Ted Cruz (R-TX), who introduced the resolution with 13 cosponsors, has been vocal about the rule’s potential negative impact on the cryptocurrency sector. While the rule technically took effect on January 1, 2025, DeFi platforms were not expected to meet compliance obligations until 2027.
The crypto industry has consistently opposed the Broker DeFi Rule, arguing that it fundamentally misunderstands how decentralized finance operates. Critics contend that DeFi platforms function as front-end interfaces facilitating peer-to-peer transactions rather than as intermediaries like traditional brokers.
Related: Trump’s Crypto Reserve Sparks Bitcoin vs. Altcoin Debate
Industry advocates maintain that applying broker reporting requirements to DeFi protocols would prove technically impossible in many cases. These systems are designed to operate without centralized control or access to user information. This misalignment between regulatory expectations and technological reality has been a central point of contention.
The administration’s statement concludes with a clear directive: “If S.J. Res. 3 were presented to the President, his senior advisors would recommend that he sign it into law.” A vote on the resolution was initially scheduled for March 5 but may be delayed due to scheduling conflicts. The outcome will be closely watched by cryptocurrency stakeholders as an indicator of the administration’s regulatory approach to the sector.
