US House Votes to Repeal IRS Rule on DeFi Brokers
One of the resolution's supporters noted that complying with the IRS broker rule would be impossible for DeFi organizations.
Author: Nikhilesh De | Edited by Aoyon Ashraf , 11 Mar 2025 21:56 UTC
What to consider:
- On Tuesday, US lawmakers passed a resolution repealing the Internal Revenue Service (IRS) rule on DeFi brokers.
- The IRS rule would impose information collection obligations on decentralized organizations, and if the resolution becomes law, the IRS would not be able to propose a similar regulation again.
- Although the Senate has already approved the resolution, it must be re-passed before it can be sent to US President Donald Trump, who is expected to sign it.
A majority of members of the US House of Representatives have voted to repeal a US Internal Revenue Service (IRS) rule that would classify cryptocurrency companies as brokers and require them to collect certain data on taxpayers and transactions, including decentralized finance (DeFi) platforms.
A bipartisan majority in the House of Representatives, 292-132, supported the Congressional Constitutional Review Act resolution, which would repeal a rule adopted in the final days of former President Joe Biden's administration.
Missouri Republican Jason Smith, urging his fellow lawmakers to support the resolution earlier in the day, stressed that the IRS rule could hurt American businesses and reduce incentives for innovation.
“There are serious doubts about the enforceability of this rule,” he said. “DeFi exchanges are different from centralized crypto exchanges or traditional banks and brokers. DeFi platforms do not and cannot collect the necessary information from users to comply with this rule.”
Last week, 70 senators voted to repeal the rule, and senior advisers to President Donald Trump have already recommended that he sign the measure. But as Representative Jason Smith (R-Mo.) pointed out, the Senate would need to re-approve the resolution because of budgetary concerns. If it approves the resolution and Trump signs it, the IRS would be barred from ever reimposing a similar rule.
Illinois Democrat Danny Davis opposed the resolution, noting that it stems from the bipartisan Infrastructure Investment and Jobs Act of 2021 and comparing cryptocurrency to stocks.
“When you sell stocks through a stockbroker, the broker is required to report the proceeds of the sale to both you and the IRS,” he said. “It will come as little surprise that if there is independent reporting on such sales, taxpayers are more likely to report their proceeds to the IRS.”
North Carolina Republican Tim Moore said the rule “goes far beyond” what Congress intended for the 2021 law.
“This rule has created an unsustainable burden on software developers, threatening America’s position in digital asset innovation,” he added.
Texas Democrat Lloyd Doggett described the resolution as “special interest legislation,” adding that it could be “used by wealthy tax cheats, drug dealers, and terrorist financiers.”
Источник
