The U.S. House of Representatives has taken a decisive step to dismantle the recent IRS regulation that classified decentralized finance (DeFi) protocols as brokers. This regulation faced backlash due to concerns it would impose burdensome reporting requirements on developers and operators of DeFi platforms. Critics argued that this could stifle innovation within the burgeoning DeFi ecosystem. The vote reflects increasing scrutiny and desire for clarity in regulatory frameworks surrounding cryptocurrency and blockchain technologies. The resolution will proceed to the Senate, where further debate and a potential vote will take place. Proponents of overturning the rule argue that it undermines the decentralized nature of DeFi and may hinder the growth of the sector in the U.S. Furthermore, many in the industry advocate for more sensible regulations that recognize the unique characteristics of digital assets and decentralized technologies. The outcome of this legislative action could significantly impact the future of DeFi regulations in the U.S.

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