Crypto Groups Request Dismissal of Lawsuit Against IRS Over Broker Rule
The DeFi broker rule controversy has concluded as industry groups requested the dismissal of their lawsuit against the IRS, citing the enactment of Joint Resolution 25, which nullifies the IRS rule. Key points include:
- The lawsuit was filed by the Blockchain Association, DeFi Education Fund, and Texas Blockchain Council over an IRS requirement for certain DeFi participants to file information returns.
- Joint Resolution 25, signed into law by President Trump, reverses this IRS rule.
- A timeline of events shows rapid legislative action following the administration change:
- Dec. 27: Lawsuit filed against the IRS.
- Jan. 22: Resolutions introduced in Congress.
- Feb. 10: Court orders status report from plaintiffs.
- Feb. 19: Industry firms urge repeal of the IRS rule.
- Feb. 28: Legislation advances out of committee.
- March 4: Bipartisan Senate vote supports the CRA.
- March 11: House passes the bill with a 292-131 vote.
- April 10: Law signed by Trump.
- This issue began with changes made by the Infrastructure Investment and Jobs Act in 2021, expanding the definition of “broker.”
- Blockchain Association CEO Kristin Smith will leave her position to become president of the Solana Policy Institute in May.