The US Senate has voted to repeal a cryptocurrency tax reporting rule that would have required digital asset platforms to provide the IRS with detailed customer transaction data, starting in 2027, PYMNTS reports.
The rule, originally implemented under the Biden administration, aimed to enhance tax compliance and align crypto exchanges with traditional stock brokerages.
The measure passed with a 70-27 vote, as 17 Democrats and one independent joined Republicans in overturning the regulation. The decision marks another legislative win for the crypto industry, which has seen increasing support since President Donald Trump took office.
“It’s a powerful statement of the importance of crypto,” said Sen. Ted Cruz (R-Texas). “We just saw a really strong bipartisan repudiation of that regulation.”
While the crypto industry has welcomed the repeal, critics warn that it could have significant consequences. The Joint Committee on Taxation estimates that scrapping the rule will result in a $3.9 billion revenue loss over the next decade.
“It would encourage more of the digital asset industry to move into the shadows,” said Mike Kaercher, deputy director of the Tax Law Center at NYU.
He highlighted concerns over tax evasion, illicit transactions, and national security risks.
The Senate’s decision comes just days before the White House’s planned crypto summit, where policymakers, industry leaders, and regulators will discuss the evolving landscape of digital assets.
Former Treasury official Amias Gerety emphasized the need for regulatory clarity to balance innovation with financial stability.
“The industry is at a crossroads,” he noted.
Gerety underscored the challenge of avoiding both excessive regulation and insufficient consumer protections.
