Final DeFi Regulations Blocked by Congress

On March 26, 2025, Congress passed a resolution that would disallow the final regulations published on December 30, 2024, that relate to information reporting requirements for brokers of digital asset transactions. Specifically, these final regulations deal with the reporting requirements as they pertain to decentralized finance (DeFi) industry participants who are considered brokers. The measure passed the Senate with a vote of 70-28; and the House of Representatives with a vote of 292-132. It is now awaiting the President’s signature. 

Under the Congressional Review Act (CRA), Congress has 60 legislative days from the submission of a final regulation to pass a resolution blocking that regulation from taking effect. When a new Congress starts, however, that new Congress is granted an additional 60 legislative days to pass these resolutions, starting from the 15th working day of the new Congress.  

Accordingly, the 119th Congress can pass a resolution under the CRA blocking any final regulation that was submitted on or after August 16, 2024, within the first 60 full legislative days from January 31, 2025. While this includes the DeFi regulations published on December 30, 2024; it does not include the general final digital asset broker regulations, which were published June 28, 2024. This is the first time the CRA has been used to disallow an IRS regulation. 

This is the first Treasury or IRS regulation to be targeted using the CRA in the 119th Congress but it may not be the last. Other regulations that could be revoked include final regulations for some energy credits created under the Inflation Reduction Act.