Michaela
The U.S. House of Representatives has approved a bipartisan measure to repeal the IRS DeFi broker rule, which would have required decentralized finance (DeFi) platforms to report user transactions to the Internal Revenue Service (IRS).
On Tuesday, the U.S. House of Representatives voted 292-132 in favor of repealing the IRS DeFi broker rule. The opposition largely came from Democratic lawmakers, though 76 Democrats joined Republicans in supporting the repeal.
This decision comes after the U.S. Senate approved the repeal on March 4 with a 70-27 vote. It signals broad bipartisan support for overturning the IRS rule on DeFi protocols.
If implemented, the rule would require DeFi platforms, including decentralized exchanges, to report gross proceeds from cryptocurrency sales and provide taxpayer information related to these transactions.
Critics also emphasized that the decentralized nature of these platforms makes it challenging to comply with such reporting requirements.
“The DeFi broker rule invades the privacy of tens of millions of Americans, hinders the development of an important new industry in the United States and would overwhelm the IRS,” said Republican Representative Mike Carey, who submitted the repeal motion.
IRS DeFi Broker Rule: Will It Stifle Digital Asset Innovation?
House Financial Services Committee Chairman French Hill praised the repeal. He argued that the IRS DeFi broker rule was detrimental to innovation within the digital asset industry.
“The Biden Administration’s controversial ‘Broker Rule’ is a clear example of government overreach that threatens to push American digital asset development overseas. I was proud to protect America’s leadership in the digital asset ecosystem and vote to overturn this harmful, anti-innovation midnight rulemaking,” Hill said.
The resolution must clear another vote in the Senate before heading to President Donald Trump, who has indicated he would approve it.
The repeal effort underscores the ongoing debate over how to effectively regulate the digital asset industry without hindering its growth or compromising user privacy. As the industry evolves, policymakers continue to grapple with balancing regulatory oversight and fostering innovation.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
