US Senate Backs Repeal of Data Collection Mandates for DeFi Platforms

The US Senate voted to repeal a cryptocurrency taxation rule that required DeFi platforms to collect and provide user data.

A resolution introduced by Congressman Mike Carey and Senator Ted Cruz concerning the IRS regulation on “gross income reporting by brokers regularly providing services for the sale of digital assets” was endorsed by the House of Representatives.

In the Senate, 78 senators voted for the repeal, while 28 opposed it. The Republican majority supported the decision in full, along with some Democrats, including faction leader Chuck Schumer.

The fiscal authority issued the rule in December 2024. It required “custodial brokers” to collect tax form 1099, which includes data on payments not related to traditional employment. This applies, for instance, to winnings, rent, and royalties.

The Cruz/Carey CRA to repeal the IRS DeFi broker rule is getting a vote in a few hours (Senate had to vote twice due to a technicality). After this bill passes today, it will be sent to President Trump’s desk to be the first crypto bill signed! https://t.co/JSyatuJxyT

— Ron Hammond (@RonwHammond) March 26, 2025

“After this bill is passed today, it will be sent to President [Donald] Trump’s desk to become the first signed cryptocurrency bill,” wrote Ron Hammond, Director of Government Relations at the Blockchain Association, ahead of the Senate vote.

In December 2024, the organization, along with the Texas Blockchain Council and DeFi Education Fund, sought to challenge the IRS rule in court.

David Sacks, appointed by Trump as “crypto czar,” confirmed that the president’s close advisors recommend he sign the bill proposed by Congress, reports The Block.

On March 4, the White House stated that the IRS rule restricts innovation, poses risks to taxpayer data privacy, and imposes significant obligations on American DeFi companies, limiting their development.

Back in March, Sacks rejected the idea of taxing crypto transactions to fund the national bitcoin reserve.