The US has repealed the IRS requirement to collect data from DeFi platforms
Date: 2025-03-12 Author: Henry Casey Categories: IN WORLD
The US Congress has passed a resolution repealing an IRS rule that required DeFi platforms to collect user information and provide it to tax authorities. The initiative was authored by Congressman Mike Carey, who developed the document together with Senator Ted Cruz.
The resolution was voted for by 291 members of the House of Representatives. Now it is heading to the Senate, where a second vote will take place. If approved, the document will be sent to US President Donald Trump for signature.
The contested rule was introduced in December 2024 and concerned so-called “custodial brokers.” It required them to collect a 1099 tax form, which records payments not related to official employment, including winnings, rent, and royalties.
According to Carey, the abolition of this requirement will help maintain the US leadership in the digital asset sector, prevent companies from going abroad, and protect user privacy. He emphasized that the IRS regulation places excessive pressure on US DeFi companies and limits their development.
The controversial rule has already sparked litigation. On December 27, 2024, the Blockchain Association, Texas Blockchain Council, and DeFi Education Fund filed a lawsuit against the IRS, claiming that these regulations threaten technological innovation.
The White House expects Trump to support the abolition of the rule. On March 4, the presidential administration said that this IRS requirement not only limits innovation, but also creates risks for taxpayer privacy and imposes an excessive burden on DeFi companies.
Earlier, on March 9, Trump-appointed "crypto czar" David Sachs spoke out against taxing cryptocurrency transactions in order to replenish the national bitcoin reserve.
