According to information shared by Fox reporter Eleanor Terrett, the House is expected to vote on Tuesday to repeal the IRS DeFi Broker Rule, following an overwhelming resolution to repeal the rule that passed in the Senate last week with a vote of 70 to 27.
This decisive vote received broader Democratic support than anticipated, including from Senate Majority Leader Chuck Schumer and Mark Warner.
The IRS DeFi Broker Rule originates from the Infrastructure Investment and Jobs Act of 2021, which requires cryptocurrency brokers to report users’ transaction data to the IRS, similar to how traditional financial institutions report tax data for stock and bond transactions.
However, the rule’s scope is overly broad, encompassing decentralized finance (DeFi) applications and developers, and it could even affect non-traditional broker roles such as miners, staking node operators, and liquidity providers. This has raised concerns in the industry that DeFi platforms and related technology developers may struggle to comply with the rule, as decentralized systems lack a central entity to collect or report user transaction data.
If the DeFi Broker Rule can be successfully repealed, it will help avoid stifling the development of DeFi, reduce regulatory uncertainty, prevent service providers from collecting user data, and enhance the competitiveness of the United States in the field of crypto innovation.
