The US Senate has voted to repeal a controversial tax rule introduced by the Biden administration that required DeFi platforms to report user transactions and issue 1099 forms. Even Democratic senators supported the decision, calling the rule excessive and threatening privacy and innovation in the crypto space. The bill is now headed to President Trump for signature, whose administration has already declared its full support for the initiative.

The repealed rule was criticized for expanding the definition of a “broker” to include decentralized DeFi protocols that have no centralized entity to oversee or enforce rules, and for requiring users to link personal data to their wallets. Experts noted that this not only violated anonymity but was also technically unfeasible for fully decentralized systems. Blockchain associations and DeFi lobbyists called the vote a historic step toward protecting citizens’ rights and technological freedom.

If signed by Trump, this would be a great decision in favor of the crypto industry in the current term, which could improve the investment climate and stimulate innovation. The industry expects simplified tax reporting and reduces regulatory pressure, which opens the way for new bills aimed at supporting digital assets.