The US House of Representatives has voted to overturn an IRS rule that required DeFi platforms to collect and provide user data. This was announced by Congressman Mike Carey, who prepared the resolution alongside Senator Ted Cruz.
✅ Passed! ✅
The House just passed my bill to repeal the IRS DeFi Broker Rule in a strong, bipartisan fashion.
Now we need to get it on @POTUS‘s desk and signed into law. pic.twitter.com/lCWAjICPJV
— Congressman Mike Carey (@RepMikeCarey) March 11, 2025
The document was supported by 291 members of Congress. It will now be sent for a second vote in the Senate before reaching President Donald Trump’s desk.
The rule introduced in December 2024, mandated “custodial brokers” to collect tax form 1099, which includes data on non-traditional employment payments, such as winnings, rent, and royalties.
Carey stated that repealing the requirement will help preserve innovation in the US digital asset sector and prevent companies from moving abroad. According to him, IRS rules create excessive pressure on American DeFi companies and infringe on taxpayers’ privacy.
The rule has already become the subject of legal proceedings. On December 27, 2024, the Blockchain Association, Texas Blockchain Council, and DeFi Education Fund filed a lawsuit against the IRS, calling the new requirements a “threat to technological development.”
The White House expects Trump to sign the Carey and Cruz resolution. On March 4, the president’s administration stated that the IRS rule limits innovation, poses risks to taxpayer data privacy, and imposes significant obligations on American DeFi companies, potentially restricting their growth.
Earlier, on March 9, Trump’s appointed “crypto czar” David Sacks rejected the idea of taxing crypto transactions to fund the national bitcoin reserve.