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The Trump administration has thrown its support behind legislation aimed at repealing a controversial IRS rule that could impose heavy compliance burdens on decentralized finance (DeFi) projects.

David Sacks, Trump’s crypto czar, confirmed on Tuesday that the White House “strongly supports” the joint congressional resolution, marking the administration’s first direct stance on pending crypto policy.

The Biden-era IRS rule, which was introduced in the final days of the previous administration, expands the definition of “broker” to include most DeFi projects.

“This rule, issued as a midnight regulation in the final days of the previous administration, would stifle American innovation and raise privacy concerns over the sharing of taxpayers’ personal information, while imposing an unprecedented compliance burden on American DeFi companies,” Sacks said in a statement.

He further noted that if the House and Senate pass the resolution overturning the IRS rule, senior Trump advisors would recommend that the president sign it into law.

Last week, the House Ways and Means Committee voted to advance the measure for a full floor vote. The Senate version, introduced by Sen. Ted Cruz (R-TX), currently has 13 Republican co-sponsors. The resolution would require simple majorities in both chambers before heading to Trump’s desk for final approval.

The bill has been widely supported by the crypto industry, with Washington-based lobbying group Coin Center calling it a pivotal moment.

Trump's crypto czar srutinized

Meanwhile, Sacks has also been under scrutiny over his personal crypto holdings.

In a post on X, he defended his decision to sell his cryptocurrency investments, including his stake in the prominent venture firm Multicoin Capital.

“I sold Multicoin too. I didn’t even have to at that point in time because the ethics process was still underway,” Sacks posted . “But I took it upon myself to sell all my cryptocurrency and my crypto-focused funds. I suggest you wait for all the facts before making baseless and hysterical smears.”

His comments were in response to criticism from political commentator Krystal Ball, who questioned whether insiders like Sacks were personally profiting from government decisions.