The US House of Representatives voted to repeal a controversial IRS requirement for DeFi platforms, highlighting the importance of privacy in digital finance and encouraging innovation in the field.
Controversial Requirement for DeFi Platforms
The rule introduced by the IRS aimed to classify DeFi platforms as brokers and required them to collect and report transaction details, including gross crypto sales and user information. Critics argued that the measure would impose an excessive compliance burden and threaten financial privacy.
Concerns Over Regulatory Overreach
Lawmakers, led by Republican Mike Carey, expressed concerns that the requirement could raise privacy issues for millions of American taxpayers. House Financial Services Committee Chairman French Hill warned that over-regulating cryptocurrency businesses would push them to conduct operations outside the US.
Conclusion and Next Steps
The bill continues on its path toward final approval. The White House supports overturning the rule, increasing the likelihood of its final rejection soon.
The repeal of the IRS requirement for DeFi platforms underscores Congress's commitment to protecting privacy and supporting innovation in the digital asset space.
