The Blockchain Association, which represents 76 cryptocurrency organizations, has urged U.S. congressional leaders to support Senator Ted Cruz’s efforts to repeal the IRS’s new decentralized finance (DeFi) broker rule.
Crypto Industry Pushes for Rule Repeal
On February 19, the association sent a letter to key lawmakers, including Senate Majority Leader John Thune, Senate Minority Leader Chuck Schumer, House Speaker Mike Johnson, and House Minority Leader Hakeem Jeffries. The letter called for the repeal of an anti-crypto regulation finalized during President Joe Biden’s administration.
Notable signatories include 0x Labs, a16z Crypto, Aptos Labs, Crypto.com, Grayscale, and Dapper Labs, among others.
Concerns Over Innovation and Compliance Burdens
The IRS’s DeFi broker rule, set to take effect in 2027, expands the definition of a “broker” to include software providers facilitating DeFi transactions. The Blockchain Association supports Cruz’s Congressional Review Act (CRA) resolution, S.J.Res. 3, which seeks to overturn this requirement.
“Under the rule, software companies that never take custody or control of users’ assets will be required to radically rebuild their services in order to unnecessarily collect and then report to the government the personal identifying information and transaction details of potentially tens of millions of American users.”
Industry experts warn that these requirements could stifle DeFi innovation in the U.S., create an undue compliance burden, and weaken the country’s standing in global financial technology. The Blockchain Association has labeled the move as a “midnight rulemaking” attempt and insists that Congress should have the final say on policies with such widespread implications.
