The U.S. Senate votes to abolish the DeFi broker rule, Trump is expected to sign it into law

The U.S. Senate passed a resolution to abolish the IRS DeFi broker rule by 70 votes to 28 on Wednesday night, a rule that was finalized in the weeks leading up to the Trump administration. The resolution will be sent to President Donald Trump, who is expected to sign it into law.

White House Cryptocurrency AI and Cryptocurrency Czar David Sachs said that Trump's senior advisors plan to recommend him doing so. Texas Republican Senator Ted Cruz and Ohio Republican Representative Mike Carey proposed a joint resolution to repeal the IRS rules finally determined in late December during Biden's last few days of presidency. This rule requires certain "decentralized finance industry participants" operate like traditional securities brokers, requiring them collect and report user transaction data.

It also requires them issue 1099 tax forms for non-employment income such as gambling winnings, rent, and royalties. According to the U.S Treasury Department, this final rule applies only entities operating major websites accessing decentralized protocols with "direct customer interaction", not targeting at protocols themselves.