Through the Congressional Review Act, the U.S. Senate has moved to nullify a specific IRS regulation looking to tighten tax disclosures for decentralized exchanges. resolution This legislative effort, initially introduced by Representative Mike Carey, cleared the Senate on March 26 with a notable 70-28 bipartisan vote and is now en route to President Trump's desk for affirmation.
The consensus among political analysts is that Trump will endorse this measure, aligning with his positive stance on cryptocurrency. According to David Sacks, tasked with overseeing Trump’s crypto policies, the administration is strongly backing the legislative move.
The USA Goes Crypto!
Earlier this month, the administration issued a statement opposing the Biden-initiated rule, citing concerns over stifled innovation, compromised privacy for taxpayers, and excessive regulatory burdens imposed on the DeFi sector.
This aligns with the administration’s broader strategy to create a fertile ground for innovation, benefitting the American tech landscape.
Wielding yet another bipartisan majority comprising 70 Senators, Congress has overturned the IRS’s demand for DeFi platforms to undertake KYC procedures, essentially reaffirming financial transaction freedom for U.S. citizens.
1/🚨 New “Broker” CRA Milestone 🚨
Back in December 2024, the IRS broadened its definition of 'brokers' to cover DeFi platforms offering trading services, mandating these entities to report crypto transactions like traditional brokers. pic.twitter.com/AOZttE9Sio
— DeFi Education Fund (@fund_defi) March 27, 2025
The crypto industry has heavily criticized these regulations. Towards the end of the year, a coalition, including the Blockchain Association and the DeFi Education Fund, challenged the IRS's rules through litigation in a Texas federal court.
The lawsuit contends the IRS overstepped its legal authority, violated the APA, and posed constitutional questions.
Opponents argue that the regulatory demand is out of touch with DeFi's decentralized paradigm and would unfairly burden these platforms.
If President Trump endorses the CRA, it will effectively block the IRS rules, exempting DeFi businesses from the impending reporting obligations slated to commence in 2027.
Under Trump’s administration, a pro-cryptocurrency sentiment prevails, with lawmakers actively engaging through various legislative proposals. Besides the CRA, the GENIUS Act of 2025 is also garnering significant traction.
Other Bills Advance in Congress
Proposed by Senator Bill Hagerty, the GENIUS Act aims to create a robust regulatory landscape for issuing and managing stablecoins in the U.S.
Stablecoins are characterized as digital currencies that maintain consistent value relative to a benchmark, like the U.S. dollar.
Under the proposed legislation, a payment stablecoin Having traversed the Senate Banking Committee on March 13, the bill must now pass the full Senate and align with a similar House proposal, the STABLE Act, for enactment.
Senator Lummis, a fervent Bitcoin supporter, has reintroduced the BITCOIN Act, which aims to form a Strategic Bitcoin Reserve, thereby sparking significant anticipation.
The legislation would see the U.S. government accumulating a million Bitcoins over five years, maintaining them for two decades as a national economic safeguard.
This initiative strengthens Trump’s executive order to establish a Bitcoin reserve, a maneuver reliant on current Bitcoin holdings. However, shifts in presidential policy could jeopardize this stance.
Born in Ann Arbor, Michigan, Nicholas Say lived extensively in Uruguay and is now based in the Far East. His work, highlighting technology and human advancement, is widely published.
