The US Senate is preparing to keep a final vote on 27 March to cancel the reporting version of the Internal Revenue Service (IRS) brokers for Defi operators.
If approved, the resolution can already be sent to President Donald Trump’s office on 28 March for signing, according to FOX Reporter Eleanor Terrett reported on March 25 and quoted three people who are familiar with the case.
The vote follows a procedural requirement after the Senate had adopted the same joint resolution in a dual superma birthday on March 4. 292 The laws voted to overthrow the broker rule, while 132 was against it.
The broker rule, completed by the IRS in December 2023, was intended to broaden the tax obligations by redefining “brokers” with digital asset platforms, including Defi Front-end interfaces.
According to the Regulation, entities that were classified as brokers would be responsible for the implementation of Know Your Customer (KYC) standards, monitoring user activity and reporting transaction data to the IRS.
Community pushback
The rule was introduced as part of the broader strategy of former President Joe Biden administration to close tax dogs in connection with crypto-transactions and to improve visibility in blockchain-based financial activity.
Since its introduction, the IRS rule has been the focus of the opposition of the industry, in which developers and proponents warn that Defi infrastructure cannot be possible to comply with surveillance and reporting requirements at broker level.
In December the decision led to a joint lawsuit Thanks to the Blockchain Association, the Defi Education Fund and the Texas Blockchain Council that challenge the regulations. The entities said the rule “runs the risk of paralyzing the American digital assets sector.”
The head of the Blockchain Association Legal, Marisa Coppel, said in the midst of the lawsuit that the treasury went beyond his legal authority in expanding the definition of “broker” to record providers of Defi-Handels Front-ends. She added that these interfaces have no influence on transactions.
Moreover, critics have emphasized that Defi protocols have no centralized control or storage authority about user funds, making the expansion of the broker rule useless.
If Trump signs, the rule is formally withdrawn, so that the extensive definition of brokers from IRS enforcement policy is removed.