- The US House voted to repeal the IRS DeFi broker rule, preventing strict data collection on decentralized finance platforms.
- Lawmakers also focused on stablecoin regulations, discussing the STABLE Act and stricter oversight for foreign stablecoin issuers under the GENIUS Act.
Lawmakers opposed strict financial oversight by voting to repeal the Internal Revenue Service’s (IRS) DeFi broker rule. The US House of Representatives approved the measure with 292 votes in favor and 132 against. The decision aimed to prevent the IRS from enforcing strict data collection requirements on decentralized finance (DeFi) platforms.
JUST IN: Another vote to strike down the IRS DeFi broker rule passed in a “super majority.”
All House Republicans (aside from a couple no-shows) as well as 76 Democrats have voted to nullify the IRS DeFi broker rule. https://t.co/b3OU0Gubky
— Eleanor Terrett (@EleanorTerrett) March 11, 2025
The rule, introduced in December under President Joe Biden’s administration, classified DeFi platforms and crypto entities as brokers. Compliance would have required detailed reporting of user transactions for taxation. Critics warned that such regulations would compromise privacy and create excessive compliance burdens for decentralized platforms.
Coinbase’s Chief Policy Officer, Faryar Shirzad, praised the outcome on X (formerly Twitter), highlighting bipartisan support from 76 Democrats. He argued that the rule would have set a harmful precedent for financial privacy. The resolution now heads to the Senate for consideration. If approved, the proposal will reach President Donald Trump for final authorization.
Stablecoin Oversight Takes Center Stage
As the House dismantled the IRS regulation, the Financial Services Committee turned its attention to another pressing issue—stablecoin regulation. The committee held a hearing to assess the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, a bill designed to modernize digital payments and enhance consumer protection.
The discussion emphasized how blockchain technology could strengthen the US dollar’s global dominance through a properly regulated stablecoin market. Financial Services Committee Chairman French Hill underlined the potential benefits, stating:
A properly regulated stablecoin market can strengthen the U.S. dollar’s dominance, modernize our payments infrastructure, and promote financial access without government overreach.
Prominent industry leaders voiced support. Caroline Butler, Global Head of Digital Assets at The Bank of New York Mellon Corporation, praised legislative efforts to establish a clear federal structure. She stressed the importance of defining stablecoin issuers, determining reserve holders, and specifying asset composition within reserves.
GENIUS Act Update Brings Stricter Oversight
Further pushing the conversation on stablecoin regulations, Senator Bill Hagerty and other Senate members introduced an update to the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The revised bill seeks to impose stricter standards on foreign stablecoin issuers, requiring higher reserve and liquidity thresholds to ensure financial stability.
Skimming through the PDF and noticed the section on ‘Reciprocity for Payment Stablecoins Issued in Overseas Jurisdictions’ has been expanded beyond the February text to include “reserve… pic.twitter.com/b1sdfgs9C5
— Eleanor Terrett (@EleanorTerrett) March 10, 2025
The GENIUS Act also incorporates a dual regulatory approach, balancing state and federal oversight while enhancing consumer protection and risk mitigation. It aims to position the US as a global leader in digital finance by promoting international cooperation for cross-border stablecoin transactions.
The Senate Banking Committee, House Financial Services Committee, and Urban Affairs Committee are set to review and mark up the bill on Thursday. The outcome of these deliberations will determine whether the updated framework advances toward becoming law.
