IRS DeFi Broker Repeal Resolution Passes in the House of Representatives

Uk Jin

Summary

CoinDesk reported that the resolution to repeal the IRS's 'DeFi broker rule' has also passed in the House of Representatives.
The regulation, which requires brokers in the DeFi ecosystem to report digital asset proceeds, has caused controversy in the industry.
Representative Jason Smith emphasized that the IRS regulation could harm American businesses and potentially hinder innovation.

The resolution to repeal the Internal Revenue Service (IRS)'s 'DeFi broker rule,' which passed the Senate last week, has also passed in the House of Representatives. The DeFi broker rule, which requires brokers within the DeFi ecosystem to report total proceeds from digital asset sales, has caused controversy in the industry.

On the 11th (local time), cryptocurrency news outlet CoinDesk reported that the resolution to repeal the DeFi broker rule passed the House with 292 votes in favor and 132 against.

Republican Representative Jason Smith of Missouri urged a vote in favor, emphasizing that the IRS regulation risks harming American businesses and could hinder innovation. He explained, "There are substantial questions about whether this rule can be implemented," adding that "DeFi exchanges are different from centralized cryptocurrency exchanges or traditional banks or brokers."

However, due to budget regulations, the resolution to repeal the DeFi broker rule will be referred back to the Senate for another vote. If it passes the Senate once more, the regulation will receive President Donald Trump's signature.