U.S. House committee pushes to roll back IRS tax rules on DeFi
A US House of Representatives committee has voted 26-16 to pass a resolution aimed at rescinding the US Internal Revenue Service (IRS) taxing rules for decentralised financial (DeFi) platforms. The resolution, proposed under the Congressional Review Act, seeks to overturn the tax reporting policy for DeFi platforms adopted by the IRS in December last year. The IRS previously required DeFi protocols to comply with a reporting regime for brokers, sparking strong opposition from the crypto industry. The industry argued that the move would threaten the way the DeFi protocol operates and could cover a large number of non-broker-dealer entities. The resolution still needs to be passed by a majority of the House and Senate and signed by the President to take effect. Supporters argue that the IRS rules are ‘unfair and unworkable,’ while opponents argue that rescinding the rules would result in a reduction of approximately $3.9 billion in U.S. tax revenues over the next decade.
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