The American House of Representatives has voted overwhelmingly to cancel the controversial Defi -broker rule that was introduced by the Internal Revenue Service (IRS) under the government of President Joe Biden.
The measure passed With strong two -part support, while 292 legislators voted in favor, while 132 opposed it. Although many Democrats resist the withdrawal, 76 broke the ranking to join Republicans when destroying the rule.
Last December the IRS completed the broker rule, which means that the requirements for tax reports expand with digital assets operators. The Regulation classified broker, including Defi Front-end Operators-and-responsible for maintaining Know Your Customer (KYC) measures, following user activity, reporting transactions and guaranteeing compliance.
Critics argued that applying these requirements to Defi -platforms was impractical. Unlike centralized exchanges, Defi -platforms have no control over user funds or have access to personal data, making it impossible to meet the rule.
House Ways and Means Committee Chairman Jason Smith condemned The rule, which calls it unfair and difficult to implement. He emphasized that Defi -Platforms cannot function as traditional financial institutions and the user information that is necessary for compliance.
He added:
“These new IRS -CRYPTO regulations require that millions of taxpayers submit new form 1099s in a way that would overwhelm the agency and have little or no value for an effective and efficient tax administration.”
In the meantime, this house decision follows the vote of the Senate on 4 March to cancel the controversial provision.
With both rooms now aligned, the resolution goes back to the Senate for definitive approval before he reaches President Donald Trump’s office. In particular, the White House has already indicated support for the relocation.
Crypto community responds
Crypto community leaders have welcomed the decision and celebrate it as an important victory.
Jake Chervinsky, Chief Legal Officer at Variant Fund, marked The importance of two -part support and noted that 94 Democratic legislators supported the withdrawal. According to Chervinsky, this signals a defeat for the anti-crypto agenda.
Coinbase’s Chief Policy Officer, Faryar Shirzad, described It as the most important dual crypto voice so far adds that it strengthens the momentum for the congress to promote the legislation of Stablecoin and market structure.
He added:
“The unworkable Defi broker rule of the IRS would have a dangerous precedent for the privacy of Americans.”
Meanwhile, Miller Whitehouse-Levine, CEO of Defi Education Fund, CEO also praised The mood, emphasizes that a two -part superma birthday of 292 house members recognized the mistakes in the broker rule of the IRS and Treasury. He stated that this decision is a positive step to promote innovation in the US.
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