The U.S. House of Representatives voted to repeal an IRS rule classifying cryptocurrency platforms as 'brokers.' This decision received bipartisan support after Senate approval.
The Controversial IRS Rule
The IRS’s rule, based on the 2021 infrastructure law, broadened the definition of 'broker' to include software developers. Republican Tim Moore claimed this threatened American technological leadership. Conversely, Democrat Danny Davis advocated for transparency in cryptocurrency transactions akin to stock trades.
The Legislative Process
The House-approved decision will return to the Senate. Jason Smith noted a second vote would be required due to budget rules. The Trump administration is expected to sign the decision.
Future of Cryptocurrency Regulation
With the rule's repeal, oversight on cryptocurrency platforms will be loosened. Opponents warn of potential tax revenue losses and exploitation by criminal organizations.
The repeal of crypto taxation rules is controversial: it offers freedom for technological innovation but risks reducing tax revenue.
