March 12, 2025
The ‘Broker’ Status
The rule, introduced in the 2021 Infrastructure Investment and Jobs Act, sought to classify DeFi platforms as ‘brokers’ like traditional financial institutions. This would have required them to aggregate and submit user transaction data to the IRS.
Source: Rep. Jason Smith (C-SPAN)
Supporters, mostly Democrats, argued the rule would improve tax compliance and raise funds for infrastructure. Critics, however, claimed it was too broad and would harm the U.S. crypto sector.
Second Vote Required
Republican Rep. Jason Smith argued the rule could stifle innovation and burden DeFi platforms that lack access to user data. Other Republicans, like Tim Moore, argued it exceeded Congress’ intent, while Democrats, including Rep. Lloyd Doggett, warned it would encourage tax evasion.
The rule was also repealed in the Senate, but a second vote is required before it reaches the White House. If passed, the IRS would be permanently barred from enforcing a similar rule.
