U.S. House Committee Votes 26-16 to Repeal IRS DeFi Tax Rule

The U.S. House of Representatives is moving to reverse IRS tax regulations on decentralized financial (DeFi) platforms. Key points include:

• House Ways and Means Committee advanced a resolution with a 26-16 vote.
• The resolution aims to eliminate an IRS transaction-reporting policy deemed unsuitable for the crypto industry.
• The rule, approved in December, imposes reporting requirements on DeFi protocols as if they were brokers, potentially affecting numerous entities not classified as brokers.
• Major crypto players signed a letter urging Congress to repeal this IRS rule.
• Senator Ted Cruz introduced a similar resolution in the Senate.
• Rep. Mike Carey emphasized the need to pass the resolution to ease taxpayer burdens and IRS workload.
• Rep. Richard Neal opposed the repeal, stating it would allow tax evasion through unreported cryptocurrency sales.
• Repealing the regulation could result in a $3.9 billion revenue loss for the U.S. over ten years.
• Rep. Jason Smith criticized the IRS for enacting the rule during the previous administration's final days.