David Sacks, White House AI and Crypto Director: Supports Repeal of So-called DeFi Broker Rules

Odaily reports that David Sacks, the White House's AI and crypto lead, posted on X platform announcing that according to the Office of Management and Budget (OMB)'s Statement of Administrative Policy, the U.S. government supports S.J. Res. 3, a bill introduced by Senator Ted Cruz and others, which aims to disapprove the IRS rule on "reporting of digital asset sales by brokers." The rule, originally proposed by the Biden administration by the end of 2024, expands the definition of "brokers" to include DeFi protocol-related software and requires certain DeFi users to report their total crypto transaction gains and taxpayer information. The White House believes this requirement would inappropriately increase the compliance burden on U.S. DeFi businesses, impede innovation, and raise privacy concerns. The statement clearly indicates that if S.J. Res. 3 is presented to the President, the White House senior advisors will recommend that the President sign the bill into law to repeal the relevant IRS provisions.