David Sacks, serving as the Crypto Czar at the White House, has expressed support for the Congressional Review Act (CRA) resolution introduced by Senator Ted Cruz and Representative Mike Carey. The resolution seeks to rescind the Broker DeFi Rule, which Sacks described as an "unjust regulatory overreach." This statement was made on the social media platform X on March 4.
"The White House is pleased to announce its support for the CRA introduced by Sen. Cruz and Rep. Carey to rescind the so-called Broker DeFi Rule," said Sacks. "an 11th hour attack on the crypto community by the Biden administration."
The Broker DeFi Rule was finalized during the closing days of President Joe Biden's administration. It aimed to classify decentralized finance (DeFi) platforms as "brokers," thereby subjecting them to stringent Internal Revenue Service (IRS) reporting requirements. According to the Wall Street Journal, critics argue that this classification could impose undue burdens on DeFi platforms, potentially stifling innovation and driving cryptocurrency businesses overseas. Recently, the Senate voted 70-27 in favor of repealing this rule, indicating bipartisan concerns over its implications.
A bipartisan effort led by Cruz and Carey is utilizing the CRA to repeal the Broker DeFi Rule. This legislative tool allows Congress to overturn federal regulations within a specific timeframe. As reported by the Wall Street Journal, there are concerns that the rule could hinder financial innovation and impose excessive compliance costs on emerging technologies.
According to his LinkedIn profile, Sacks is an entrepreneur and investor with a notable career in technology and finance. He served as the founding Chief Operating Officer (COO) of PayPal, co-founded Yammer—an enterprise social network—and is a general partner at Craft Ventures, a venture capital firm. In December 2024, President Donald Trump appointed Sacks as the White House AI and Crypto Czar, entrusting him with shaping national policy on artificial intelligence and cryptocurrency.
