The US Senate voted on Tuesday to overturn two crypto-related regulations imposed by the Biden administration. The IRS DeFi broker rule and a digital-payments rule from the Consumer Financial Protection Bureau are seen as overly burdensome and hindering financial innovation.
Repeal efforts rely on the Congressional Review Act, which allows Congress to cancel rules enacted in the final days of an outgoing administration. This is familiar terrain for Republicans, who have used similar tactics under Trump.
The Senate passed the first CRA resolution to repeal the IRS DeFi broker rule with a 70-27 vote. The rule aimed to bring more funds from crypto trading by expanding the Internal Revenue Service’s reporting requirements into automated operations on decentralized systems. Critics argue that this approach is technologically unfeasible.
In the second vote, the Senate passed a procedural motion to move forward with another CRA resolution seeking to overturn a January CFPB rule that expanded its authority to supervise fintech apps in payments space. The CFPB’s rule deals with fintech apps using non-custodial crypto wallets, which pose compliance challenges for developers.
The CFPB’s proposal has been supported by some advocacy groups, but others, including the industry, have criticized it as overly burdensome. The Senate Majority Leader stated that the Biden administration “stifled financial innovation” and the Senate is working to undo these regulations to restore financial freedom.
Neither rule would be rescinded until the House passes both resolutions. Allegations of unfair treatment against crypto companies also raise concerns about subjective banking regulation, with some accusing a targeted government crackdown on the industry.
Source: https://www.axios.com/2025/03/05/biden-crypto-regulations-irs-vote