U.S. Lawmakers Vote to Ease Regulatory Oversight of the DeFi Sector

The U.S. House of Representatives voted in favor of repealing a rule requiring DeFi platforms to collect user and transaction data and report it to the Internal Revenue Service (IRS).

Members of the House of Representatives voted to overturn the so-called IRS DeFi broker rule, officially titled “Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales.” The U.S. Senate previously passed a similar resolution supporting the repeal of the IRS rule.

Following the vote, Republican Representative Mike Carey, who introduced the repeal proposal, stated that the IRS DeFi broker rule infringes on the privacy of millions of Americans, stifles the growth of a critical new industry in the U.S., and places an unnecessary burden on the IRS.

French Hill, Chair of the House Financial Services Committee, welcomed the repeal, calling the IRS rule a clear example of government overreach that would drive American digital asset innovations overseas.

Before the resolution is enacted, it must undergo another vote in the Senate and then be sent to President Donald Trump for approval. Trump already signaled his support for the initiative.

Opponents of the repeal, primarily from the Democratic Party, argue that overturning the rule will facilitate tax evasion and money laundering. They claim that the main beneficiaries of this decision include wealthy Republican donors, tax fraudsters, drug traffickers, and those financing terrorism.

Donald Trump’s administration consistently supported the expansion of the U.S. crypto sector. Earlier this March, the White House officially established a Strategic Bitcoin Reserve and a Digital Asset Stockpile, while some federal agencies began discussing the use of DLT solutions and stablecoins for budget oversight.