The House of Representatives has passed a resolution overturning the IRS’s broker rule related to decentralized finance (DeFi), which was implemented in the final days of the Biden administration. The resolution, introduced under the Congressional Review Act, received bipartisan support with a 292-131 vote, including 76 Democratic votes in favor. The IRS's rule mandates that DeFi brokers file 1099-DA forms starting in tax year 2025, but industry advocates argue this requirement is unfeasible due to the decentralized nature of these platforms, which cannot provide the required user data. Republican Jason Smith emphasized that DeFi exchanges differ significantly from traditional financial institutions and cannot comply with these data requests. The resolution has already passed in the Senate and is slated for the president’s approval, with advisers suggesting he should sign it. This legislative move signals a shift in regulatory attitudes toward the growing DeFi sector and highlights ongoing tensions between the industry and federal oversight.

Source 🔗