Feb 21, 01:14 PM

Crypto Industry, With 75 Participants, Urges Congress to Repeal IRS DeFi Broker Rule, Support Sen. Ted Cruz's Resolution

The cryptocurrency industry, led by the Blockchain Association and supported by major players such as Coinbase, a16z, Paradigm, Kraken, Uniswap, and Anchorage Digital, has called on the U.S. Congress to repeal the IRS's DeFi broker information reporting rule. The rule, enacted in the final days of the Biden administration, misclassifies non-custodial wallets as 'brokers,' which the industry argues threatens innovation, privacy, and U.S. leadership in decentralized finance. The Blockchain Association has mobilized 75 industry participants to sign a letter urging Congress to act, highlighting the rule's potential to impose impossible compliance requirements on developers of noncustodial wallets and DeFi protocols. Additionally, Coinbase has emphasized the need for clear crypto regulations, warning that without legislative clarity, the U.S. risks losing its edge in blockchain innovation and driving innovation overseas. The company outlined key legislative priorities, including defining digital assets, granting the Commodity Futures Trading Commission (CFTC) oversight of crypto spot markets, and establishing clear rules for stablecoins and capital raising. Coinbase also highlighted six key priorities to address the regulatory uncertainty, and the Blockchain Association has supported Senator Ted Cruz's resolution to overturn the IRS's rule.