A bill has been introduced in the US House to bar IRS taxation on decentralized finance (DeFi) platforms, with support from Republicans.
Bill Proposal
The House Ways and Means Committee has advanced a bill to prevent the IRS from taxing DeFi platforms. The bill has received support from Republicans advocating for cryptocurrency advancement.
Criticism and Support
Major crypto firms and lobbying groups have opposed the rule, highlighting its unfairness. They warn it would impose unnecessary burdens on DeFi platforms. Meanwhile, House proponents argue regulatory measures are essential for enhanced tax compliance.
Crypto Industry Response
A similar measure has been discussed in the Senate. Despite support from both Congressional chambers, Presidential approval is required for enactment. Passing the bill would remove mandatory tax reporting requirements for DeFi projects.
The US House's proposed bill could significantly reshape DeFi platform regulations if passed by Congress and endorsed by the president. However, opinion among lawmakers remains divided.
