The U.S. House of Representatives voted in favor of a resolution to overturn an IRS rule that classified decentralized finance (DeFi) entities as brokers. This rule mandated that these platforms collect taxpayer and transaction information, which many lawmakers argued was impractical for DeFi operations.
In a bipartisan effort, the House passed the resolution with a vote of 292-132, following the Senate’s prior approval. If this resolution becomes law, it will prevent the IRS from proposing similar rules in the future.
Missouri Republican Jason Smith voiced strong support for the resolution, emphasizing that the IRS broker rule could harm U.S. businesses and stifle innovation within the DeFi sector. He pointed out that DeFi platforms are fundamentally different from centralized crypto exchanges and cannot gather the necessary information from users to comply with such regulations.
Last week, a significant majority of Senators also voted against the IRS rule, and President Donald Trump has indicated support for signing the resolution into law, which would block the IRS from implementing similar rules again.
However, not all lawmakers were in agreement. Illinois Democrat Danny Davis criticized the resolution, arguing that it deviates from the original intentions behind the 2021 bipartisan Infrastructure Investment and Jobs Act. He compared the reporting required for crypto transactions to standard stock transactions to illustrate the necessity for some level of oversight.
While Republican Tim Moore highlighted that the IRS rule imposed burdens that could hinder software development and American leadership in digital assets, Democrat Lloyd Doggett described the resolution as catering to special interests and a potential boon for tax evaders.
The vote came after previous discussions addressing the necessity to fund the U.S. government, which passed concurrently with a narrow margin. The resolution now awaits Senate approval again due to parliamentary procedures before reaching the president’s desk.
For further details, you can check the Congressional Review Act resolution here.
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