The US Congress has voted to overturn a controversial IRS rule mandating that decentralized finance platforms disclose user transaction details.
Congress Vote
On March 11, the US House of Representatives voted 292-132 to repeal the IRS rule requiring transaction reporting by DeFi platforms. While all 132 opposing votes were from Democrats, 76 members of the party joined Republicans in backing the repeal.
Details of the DeFi Rule
The DeFi rule proposed that decentralized exchanges and platforms report transaction data, including user information and gross proceeds from crypto sales, to the IRS.
Criticism and Future Steps
Critics argued that the rule placed a heavy compliance burden on DeFi platforms and raised privacy issues. Previously, the Senate also voted to repeal the rule, and it is likely to be signed into law by the President.
With White House backing, the repeal of the IRS rule for DeFi platforms is likely to become law, significantly impacting the future of the crypto industry in the United States.
