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The saga of the DEFI broker’s rule is behind us. It only took over 3 years.
Wednesday, groups of the cryptography industry all closed the book on the issue when they asked that the trial they brought against IRS be rejected.
“The parties agree that, in the light of the promulgation of joint resolution 25, the final rule has no strength and effect, which means that this action is now theoretical,” they wrote.
The resolution, taken under the Congressional Review Act, sought to serve an IRS rule (published in December) which required “certain participants in the decentralized financial industry to produce and provide information yields as brokers”.
The resolution adopted the room and the Senate with bipartite support and last week, President Trump signed it, officially reversing the rule.
A rapid chronology of the latest events shows the speed at which it was done after the change of administration:
- December 27: Blockchain Association, DEFI EDUCATION FUND and Texas Blockchain Council continue the IRS.
- January 22: Two days after President Trump was sworn in, representative Mike Carey and Senator Ted Cruz introduced resolutions to reverse the IRS rule.
- February 10: The court orders a situation report of the complainants, who say they take care to see if the legislation adopts.
- February 19: Industry companies write a letter to the Senate and to the leaders of the Chamber urging them to repeal the rule of the IRS.
- February 28: The legislation aimed at overthrowing the rule is progressing from the Chamber’s way and means committee.
- March 4: 70 senators, including 18 democrats, vote in favor of the arc.
- March 11: House members also adopt the bill. Tally final vote: 292-131.
- April 10: Trump signs HJ Res. 25 In law.
And now this court deposit.
We must note that this story started long before December. When the law on investments and infrastructure jobs has become the law in 2021, it modified the definition of a “broker” to include “anyone who, for examination, is responsible for regularly providing any service carrying out digital asset transfers on behalf of another person”.
The CEO of the Blockchain Association, Kristin Smith, warned in an opinion article before the adoption of the bill according to which she “threatened to sabotage American leadership in digital currency and send jobs abroad”.
Smith in fact leaves the defense group of cryptography to become president of the Solana Policy Institute in May. Thus, not only does the dismissal of the prosecution put a knot on the question of the broker’s rule – Smith is, in a sense, to put an arc on his mandate of the Blockchain association.
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