According to ShibDaily, the U.S. House of Representatives has voted to repeal the IRS DeFi broker rule, a regulation that would have required decentralized finance (DeFi) platforms to report user transactions to the Internal Revenue Service (IRS). The House approved the measure with a 292-132 vote, showcasing bipartisan support for overturning the rule. While opposition primarily came from Democratic lawmakers, 76 Democrats joined Republicans in favor of the repeal. This decision follows the U.S. Senate's approval of the repeal on March 4, with a 70-27 vote, indicating widespread bipartisan agreement.
The IRS DeFi broker rule, if implemented, would mandate DeFi platforms, including decentralized exchanges, to report gross proceeds from cryptocurrency sales and provide taxpayer information related to these transactions. Critics argue that the decentralized nature of these platforms makes compliance with such reporting requirements challenging. Republican Representative Mike Carey, who submitted the repeal motion, stated that the rule invades the privacy of millions of Americans and hinders the development of the DeFi industry in the United States. House Financial Services Committee Chairman French Hill also praised the repeal, asserting that the IRS rule was detrimental to innovation within the digital asset industry. Hill described the rule as government overreach that could push American digital asset development overseas.
The resolution must undergo another vote in the Senate before reaching U.S. President Donald Trump, who has indicated his approval of the repeal. This effort highlights the ongoing debate over how to regulate the digital asset industry effectively without stifling its growth or compromising user privacy. As the industry continues to evolve, policymakers are tasked with finding a balance between regulatory oversight and fostering innovation. The repeal of the IRS DeFi broker rule underscores the challenges faced by lawmakers in navigating the complexities of digital asset regulation.