U.S. House Passes Resolution to Repeal DeFi Regulations by IRS

# U.S. House Passes Resolution to Overturn IRS Crypto Reporting Rules The U.S. House of Representatives has passed a resolution to repeal IRS regulations that classified certain cryptocurrency-related activities as broker transactions requiring information reporting, CoinDesk reported on the evening of November 11 (local time). According to CoinDesk, the House approved the resolution with a bipartisan vote of 292 to 132. This resolution, enacted under the Congressional Review Act, overturns regulations finalized at the end of the Biden administration. Although the resolution has already cleared the Senate, it will need to be approved once more by the Senate due to budget rules. Once President Trump signs the resolution, the IRS will be barred from proposing similar regulations in the future. Missouri Republican Representative Jason Smith, urging support for the resolution, stated, "These regulations could harm American businesses and stifle innovation." He emphasized that "DeFi exchanges are different from centralized crypto exchanges or traditional banks and brokers" and that "DeFi platforms are unable to collect the necessary user information to comply with these regulations." # Debate and Future of the Legislation The regulation originated from the bipartisan Infrastructure Investment and Jobs Act of 2021. Illinois Democrat Rep. Danny Davis opposed the resolution, comparing it to stock trading. He argued, "Just as stock brokers report transaction earnings to the IRS and taxpayers, independent reporting helps taxpayers report their income more accurately." On the other hand, North Carolina Republican Rep. Tim Moore contended, "This regulation extends far beyond what Congress intended in the 2021 Act." He argued that the regulations impose an undue burden on software developers and threaten U.S. leadership in the digital asset innovation space. Texas Democrat Rep. Lloyd Doggett criticized the resolution as serving "special interests." He cautioned that the resolution could be exploited by wealthy tax evaders, drug traffickers, and terrorist financiers, and warned it could increase the national debt by $4 billion, contradicting President Trump's stated goal of reducing the debt. # Next Steps for the Resolution Last week, the Senate passed the resolution to repeal the regulations with 70 votes in favor, and senior advisors to President Trump have already recommended that he sign the measure. However, the Senate must approve the resolution again as part of the legislative process. If the Senate approves and President Trump signs it, the IRS will be prohibited from proposing similar regulations in the future. Additionally, the House passed a continuing resolution by a vote of 217 to 213 to extend government funding until September 30, 2025. This resolution now heads to the Senate.