Senate votes to repeal controversial IRS rule, Trump expected to sign

The U.S. Senate voted to repeal a controversial crypto tax rule finalized weeks before the Trump administration took office. 

"After this bill passes today, it will be sent to President Trump's desk to be the first crypto bill signed," Ron Hammond, senior director of government relations at the Blockchain Association, said in a post on X ahead of the vote.

When it was finalized, the rule sparked strong opposition from crypto industry leaders. The DeFi Education Fund, along with other groups, sued the IRS shortly after its finalization, warning that the requirements would "push this entire, burgeoning technology offshore."

Calling the repeal a "crucial step towards protecting U.S. innovation and ensuring that developers can continue to build cutting-edge technologies without the burden of unclear, overreaching regulations," Amanda Tuminelli, the fund's executive director, hailed the Senate's vote in a statement on Wednesday. "The DeFi Education Fund commends the bipartisan supermajority of Congressional leaders who voted in favor of the 'DeFi Broker' CRA resolution, recognizing the severe and far-reaching consequences of the IRS’ misguided rulemaking."

Some Democrats have opposed passing the resolution and say Republicans are trying to weaken the IRS.

"They are the party that has consistently underfunded the IRS," said Rep. Richard Neal, D-Mass., in a hearing in February.