The US Senate has passed S.J. Res. 3, a resolution blocking an Internal Revenue Service (IRS) rule that sought to expand the definition of “brokers” to include certain decentralized finance (DeFi) participants. 

The resolution, introduced by Senator Ted Cruz (R-TX) and co-sponsored by 13 other lawmakers, was approved in a 70-27 vote on March 4, signaling strong bipartisan opposition to the IRS regulation.

The now-overturned rule, issued on Dec. 30, 2024, in the final days of the previous administration, required entities facilitating digital asset sales—such as software developers providing access to DeFi protocols—to report gross proceeds from transactions. 

Critics argued that this expanded definition of “broker” would place unfair compliance burdens on DeFi platforms and raise privacy concerns by forcing the collection of taxpayer information.

The White House formally endorsed the resolution, stating that the regulation would “stifle American innovation” and hinder economic growth. 

In an official Statement of Administration Policy, the current administration expressed strong support for overturning the rule, aligning itself with lawmakers who viewed the IRS measure as an overreach. The statement also affirmed that, if S.J. Res. 3 reaches the President’s desk, senior advisors would recommend signing it into law.

“The White House is pleased to announce its support for the CRA introduced by @SenTedCruz and @RepMikeCarey to rescind the so-called Broker DeFi Rule, an 11th-hour attack on the crypto community,” venture capitalist David Sacks wrote in a tweet, referring to the resolution’s basis in the Congressional Review Act (CRA).

The resolution now heads to the House of Representatives for further consideration. If passed and signed into law, it would officially nullify the IRS rule, preventing its enforcement.