Senate vote against DeFi broker rule a ‘hopeful sign’
Senate Majority Leader John Thune said the IRS rule “puts at risk the privacy and security” of millions of Americans trading digital assets
Senate Majority Leader John Thune | Gage Skidmore/”John Thune” (CC license)
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Some believe the Senate’s vote to overturn the so-called DeFi broker rule is a win that goes beyond this specific issue.
If you need a refresher, the IRS revealed a rule in December that sought to force tax reporting requirements on crypto software providers — even those not acting as intermediaries.
Fast forward to the following month, when the overwhelmingly pro-crypto Congress was sworn in. Two days after Trump’s inauguration, Sen. Ted Cruz and Rep. Mike Carey floated a Congressional Review Act (CRA) resolution to reverse the rule.
Senate Majority Leader John Thune said in a floor speech that the IRS rule “puts at risk the privacy and security” of millions of Americans trading digital assets, according to an excerpt his press secretary sent me.
It could also give foreign companies, which wouldn’t have to comply with such a rule, an advantage, he added.
The Senate’s final vote on the CRA: 70 yeas and 27 nays.
With many crypto-friendly lawmakers now on the Hill, this vote marked “the first moment to convert that sentiment into action,” Blockchain Association CEO Kristin Smith said on X.
It’s “a hopeful sign,” she added, and “bodes well for the efforts to design and pass stablecoin and market structure legislation.”
Van Buren Capital general partner Scott Johnsson said on X last month that this vote would be a “heat check” on how Democrats could choose to vote on crypto-related issues going forward.
Smith noted that 18 Democrats voted to repeal the rule. Johnsson’s takeaway was that “productive policy tailwinds got a big boost.”
Ron Hammond, Blockchain Associated’s government relations director, added in a response to Johnsson that the vote count was “insanely high” for a CRA.
To the point of being a positive sign for future laws, we heard from Cynthia Lummis last week that stablecoin legislation was the Senate Digital Asset Subcommittee’s top priority.
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