Summary: The White House is backing a Congressional Review Act (CRA) introduced by Senator Ted Cruz to overturn the IRS’s DeFi broker rule requiring KYC reporting by DeFi platforms. It has been branded an attack on the crypto sector by critics like Crypto Tzar David Sacks.The CRA only needs a simple majority to pass and can set the direction for future US regulations of crypto.
US legislators are moving to repeal the IRS’s broker rule that treats DeFi creators and front-end platforms as brokers who must track transactions and apply Know Your Customer (KYC) procedures. The rule applies to all digital assets, including NFTs and stablecoins.
YOU MIGHT ALSO LIKE: Solana Soars 22% as Trump Puts It Ahead of Bitcoin in U.S. Crypto Reserve
Republican Senator Ted Cruz is leading the push to pass the CRA, officially known as S.J. Res. 3, which would reverse the IRS regulation. The first vote was scheduled for March 5 but may be delayed due to scheduling conflicts, such as the State of the Union address.
YOU MIGHT ALSO LIKE: Cardano Leads Gains in Trump’s Crypto Reserve Announcement
Critics of the rule argue that it disproportionately burdens DeFi creators and stifles innovation. Crypto Tzar David Sacks has called it “an 11th-hour attack” by the Biden administration. The White House prefers the CRA, stating the rule harms US crypto businesses and invades privacy. If the CRA prevails, it would stop similar regulations and signal a pro-crypto trend for future US government policies.