US House Votes to Overturn IRS DeFi Broker Rule

US lawmakers have voted to overturn the IRS’s controversial rule that would have required decentralized finance platforms to report user transactions.

The bipartisan decision, voted 292-132 by the House of Representatives on March 11, included support from 76 Democrats joining Republicans to repeal the rule.

The IRS DeFi broker rule would have mandated decentralized exchanges and other platforms to report transaction details, including user information and gross proceeds, to the IRS.

Critics argued that the rule imposed an excessive compliance burden on DeFi platforms and raised privacy concerns by collecting taxpayer data.