US House votes to overturn IRS defi broker rule

Lawmakers in the United States have voted to scrap the Internal Revenue Service’s controversial rule that would have forced decentralized finance platforms to report user transactions. The motion against the IRS DeFi broker rule saw bipartisan support, with the U.S. House of Representatives voting 292-132 in favor of repealing the rule on March 11. While all 132 opposing votes came from Democrats, 76 from the party crossed the aisle to join Republicans in backing the repeal. The DeFi broker rule would have required decentralized exchanges and other DeFi platforms to report transaction details, including user information and gross proceeds from crypto sales, to the IRS. Critics of the measure have argued that it placed an unreasonable compliance burden on DeFi platforms and raised privacy concerns over collecting taxpayer data. According to Republican Representative Mike Carey , the rule was a “massive government overreach” that would have “invaded the privacy of tens of millions of Americans” while stifling an emerging industry. House Financial Services Committee Chairman French Hill has also echoed these concerns, calling the rule “a clear example of government overreach” that risked driving digital asset development overseas. You might also like: “A misguided rush to regulate” — 1inch Labs CCO on IRS approach to DeFi as Senate overturns rule The House vote follows the Senate’s decision on March 4, where lawmakers also moved to strike down the rule with a 70-27 majority. As previously reported by crypto.news, the House advanced a resolution to repeal the rule on February 26. With both chambers of Congress voting to repeal the rule, the resolution now heads back to the Senate for a final vote before landing on President Donald Trump’s desk. The White House has already signaled support for repealing the rule , making it likely that the repeal will be signed into law. Read more: U.S. Senate crushes Biden-Era IRS rule targeting DeFi