House Moves to Repeal Controversial DeFi Tax Rule

The U.S. House of Representatives has taken a significant step towards overturning the Internal Revenue Service’s (IRS) tax policy on decentralized financial (DeFi) platforms. This action comes after the IRS implemented a new reporting system, which industry leaders argue creates undue burdens for DeFi companies and potentially impacts entities not classified as brokers. The Ways and Means Committee voted 26-16 to advance a resolution under the Congressional Review Act to repeal this rule. This resolution requires approval from both chambers of Congress and the President’s signature before becoming law. Now, the full House must consider it.