The U.S. House of Representatives voted 292-132 on March 11, 2025, to repeal an IRS rule mandating decentralized finance (DeFi) platforms to collect and report taxpayer information. The bipartisan effort, backed by 76 Congressional Democrats, was driven by concerns over the impracticality of the compliance requirements imposed by the rule. Critics, including House Ways and Means Committee Chairman Jason Smith, argued that DeFi platforms lack the capability to gather such information. The proposed IRS regulation had sought to redefine 'broker' to include DeFi services, compelling them to file tax documents despite their technical limitations. While proponents of the repeal celebrated a potential shift in crypto regulations, some Democrats cautioned against possible tax evasion by wealthy individuals. If the resolution is approved by the Senate and signed into law by President Trump, it will restrict the IRS from enacting similar regulations without explicit congressional consent. This development marks a significant moment in the evolving dialogue around cryptocurrency regulation in the U.S.

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