House Repeals Biden’s DeFi Broker Rule in Crypto Win

This decision, following a resounding Senate vote last week, marks a significant victory for the crypto industry.

The House vote was 292-131, showing strong bipartisan support for blocking this DeFi rule.

Congress Rejects DeFi Broker Rule, Backing Financial Freedom

Just last week, the Senate rejected the proposal with a 70-27 vote. Notably, 94 Congressional Democrats joined Republicans in opposing the measure, signaling a shift in how lawmakers view DeFi.

The Biden administration’s rule would have classified developers and providers of non-custodial crypto software as “brokers”. This forces them to conduct KYC checks on users. Critics argued that this was an overreach, as non-custodial platforms do not hold user funds. Also, it cannot realistically comply with such regulations.

Opponents of the rule warned that it could stifle innovation and drive crypto businesses offshore. Also, it infringes on personal privacy. By rejecting the rule, Congress has made it clear that it values financial freedom.

The Anti-Crypto Army Takes a Hit

This vote is a major blow to what many in the industry call the “anti-crypto army”. Over the past few years, certain lawmakers and regulators have pushed for tighter controls on digital assets, often citing concerns about illicit activity. However, the strong bipartisan opposition to the DeFi broker rule suggests that crypto is gaining broader acceptance on Capitol Hill.

Lawmakers who supported overturning the rule emphasized the need for sensible regulation that fosters innovation rather than crushing it.

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