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White House Supports Repeal of Broker DeFi Rule
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On March 4th, David Sacks, the White House Crypto Czar, announced support for a Congressional Review Act (CRA) resolution.
The resolution was introduced by Senator Ted Cruz and Representative Mike Carey. Let’s discover more about this DeFi Rule and why this is important for the industry.
White House Shifts Stance on DeFi Regulation
The rule in question, finalized in the Biden administration’s final hours, significantly broadens the definition of a “broker” in the crypto world. This expansion could force decentralized finance (DeFi) platforms, miners, and developers to comply with strict reporting requirements designed for traditional financial institutions. Critics argue that applying these regulations to DeFi is like trying to fit a square peg in a round hole—it just doesn’t work.
Sacks made the administration’s stance clear, stating, “The White House is pleased to announce its support for the CRA introduced by Ted Cruz and Mike Carey to rescind the so-called Broker DeFi Rule, an 11th-hour attack on the crypto community by the Biden administration.”
The White House is pleased to announce its support for the CRA introduced by @SenTedCruz and @RepMikeCarey to rescind the so-called Broker DeFi Rule, an 11th hour attack on the crypto community by the Biden administration. pic.twitter.com/T7Hxasb4aC
— David Sacks (@davidsacks47) March 4, 2025
His comments signal a major shift in how the federal government is approaching crypto regulation. Instead of a heavy-handed approach that could stifle innovation, the White House is now backing efforts to keep DeFi thriving.
Industry and Lawmakers Push Back
Crypto advocates have been raising red flags about the rule since its introduction. They argue that it places impossible burdens on DeFi platforms, which operate without central control. Many industry leaders believe the rule would push crypto innovation overseas, hurting American competitiveness in the blockchain space.
NEW: 76 crypto firms back Ted Cruz’s push to repeal the IRS DeFi broker rule, warning it threatens US innovation and unfairly burdens blockchain firms. pic.twitter.com/k0x4tpuesF
— Cointelegraph (@Cointelegraph) February 20, 2025
Senator Cruz has been vocal about his opposition, calling the rule an “unacceptable overreach” that would hurt businesses and consumers alike. Representative Carey echoed these concerns, saying the CRA resolution aims to “restore common sense” to crypto regulations.
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