Legislators in the U.S. House voted overwhelmingly to repeal an IRS rule that classified certain crypto entities as brokers. This motion, which saw a bipartisan majority of 292-132, aims to protect decentralized finance (DeFi) platforms from stringent regulatory demands.

Key Points:

• The IRS’s regulation was seen as a hindrance to innovation, particularly under the purview of DeFi.
• If enacted, the repeal would prevent similar regulations from being proposed in the future.
• The resolution already passed through the Senate and is expected to be signed into law by President Donald Trump.

Republican Representative Jason Smith championed the resolution, emphasizing the need for a conducive environment for U.S. business innovation. He expressed skepticism over the IRS’s ability to enforce these regulations on decentralized networks:

“DeFi exchanges are not the same as centralized crypto exchanges or traditional banks or brokers.”
Translation: DeFi products differ significantly from traditional financial intermediaries, complicating compliance.

On the opposition side, **Democrat Danny Davis highlighted concerns regarding potential revenue loss due to reduced oversight akin to stock trading regulations:

“When you sell stock with a broker, the broker reports this to the IRS, leading to higher compliance and revenue.”
Translation: Transparent reporting tends to enhance tax compliance, benefiting public finances.

Overall, while the resolution reflects a significant legislative pushback against stringent IRS rules, the debate continues around the implications for crypto and financial accountability.